Opening Bell Report
The markets opened sharply lower as investors awaited lawmakers' approval of an unpopular $700 billion rescue package to revive the financial services sector. The Dow tumbled more than 250 points to 10,875 while Nasdaq tumbled 80 points to 2103.
On the upside
Foot Locker (NYSE: FL) offered $102 million to buy Delias (Nasdaq: DLIA) to boost the shoe retailer's appeal among teenage skateboarders.
Analysts upgraded their opinion of DirecTV Group (NYSE: DTV) whose satellite TV services are being resold by AT&T (NYSE: T).
Shares of Fannie Mae (NYSE: FNM) and Freddie Mac (NYSE: FRE) bucked market trends and edged higher after the nation's two biggest mortgage finance companies received subpoenas that open investigations into potential fraud.
On the downside
Citigroup (NYSE: C) worked with the FDIC to acquire the banking operations of Wachovia (NYSE: WB) agreeing to share the risk of potential mortgage portfolio losses. Wachovia stock which traded at $10 a share on Friday were valued at approximately $1 a share.
Morgan Stanley (NYSE: MS) received a lifeline through Japan's Mitsubishi UFJ Financial Group which will invest $9 billion for a 21% stake in the U.S. investment bank.
An analyst downgraded Apple (Nasdaq: AAPL) due to an expected decline in consumer spending.
In the broad market, declining issues overwhelmed advancers by a margin of more than 8 to 1 on the NYSE and by more than 5 to 1 on Nasdaq. The Russell 2000 which tracks small cap stocks lost 20 points to 684.
