June 30, 2008 Oil, gas prices soar...again Play video

(NECN/ABC) - Wall Street put the Dow in downtrodden once again Monday morning, teetering on the edge of Bear Market Territory. Middle east tensions are being blamed for pushing oil over the $143 a barrel mark Monday morning up more than $3 from Friday's close.

Residents in Chula Vista, California already know they won't see fireworks. The city dropped a bombshell instead -- 4th of July canceled for lack of funds.

A bear market is marked by a 20% decline.

Since October, the dow has dropped 19.9 percent 10 percent this month alone, making it the worst June performance since the Great Depression. But market analysts say it's not all bad.

People are responding to the higher prices by driving less. The kind of house process is a problem for homeowners, but for first time buyers this is great, housing's going to become more affordable." Now, if only gas prices would follow suit.

Investors are thinking about stagflation- increased inflation combined with decreased economic growth.

Auto sales for the month of June come out Wednesday. Then, Thursday we'll get a look at jobs for the month of June, which are expected to be down again.

ABC's Lindsey Davis reports.