With a Fed rate cut to record lows in place, investors turned their attention to the unfinished business of saving the automotive industry. The Dow lost 88 points to 8835 while Nasdaq fell 17 points to 1572.
On the upside
Shares of Satyam Computer Services (NYSE: SAY) rose after the India-based company cancelled a very unpopular acquisition plan.The shipping and railway sectors continued to strengthen. Shares of Kansas City Southern (NYSE: KSU) and Genco Shipping (NYSE: GNK) advanced sharply higher.
Joy Global (Nasdaq: JOYG) posted flat revenues and higher 4th quarter profits due to strong demand for its mining equipment. Investors focus on the company's stronger balance sheet despite a lower 2009 outlook.
On the downside
Motorola (NYSE: MOT) announced executive salary cuts and a freeze on its 401K matching contributions which effectively cut compensation for employees.
Cereal maker General Mills (NYSE: GIS) posted lower 2nd quarter profits that beat expectations, but a strong U.S. dollar tempered gains in overseas sales.
In the broad market, declining issues outpaced advancers by nearly 5 to 2 on the NYSE and by nearly 3 to 1 on Nasdaq. The Russell 2000 which tracks small cap stocks plunged 16 points to 453.