Stocks End Lower amid Bailout, Buffett News

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Construction spending was virtually unchanged in August, according to the Census Bureau. Markets had expected a 0.4% drop.

ADP estimates that nonfarm private payroll employment fell 8,000 in September. ADP estimates that manufacturing lost another 48,000 jobs, in line with consensus, and that other goods-producing jobs fell 24,000. These losses were offset by a gain of 64,000 service jobs.

In Europe, which is having its own financial-sector difficulites, markets were abuzz Wednesday with talk of a coordinated €300 billion bailout plan. But French Economic Minister Lagarde said "there is no such thing".

Bloomberg reports European Central Bank President Jean- Claude Trichet said U.S. lawmakers must pass a $700 billion rescue package for "for the sake of the U.S. and for the sake of global finance. I am confident, but of course it is the decision of the U.S. Congress." Trichet said a pan-European approach to the banking crisis was unlikely, saying "we are not a fully-fledged federation with a federal budget." "Each country has to mobilize its own efforts," Trichet said.

European markets finished mixed Wednesday. In London, the FTSE 100 index rose 1.17% to 4,959.59. In Paris, the CAC 40 index added 0.56% to 4,054.54. Germany's DAX index dropped 0.42% to 5,806.33.

Japan's Nikkei 225 finished higher by 0.96% at 11,368.26. Markets in Hong Kong and Shanghai were closed for a holiday.

In afternoon trading Wednesday, the 10-year Treasury note was higher at at 102-13/32 for a yield of 3.710%, while the 30-year bond was higher at 105-12/32 for a yield of 4.185%. London sources cited by S&P MarketScope said the overnight Libor rate, which surged to 9% yesterday, was indicated in the 4% area, which cold make it easier for central banks to borrow from one another.

The dollar index was up 0.19 to 79.50.

November West Texas Intermediate crude oil futures were off $1.81 to $98.83 per barrel Wednesday after the Energy Dept. reported that crude oil inventories rose 4.3 million barrels to 294.5 million barrels in the week ended Sept. 26, putting stocks in the lower half of the average range for this time of year.

December gold futures were higher at $892.10 per ounce.

Among Wednesday's stocks in the news, Johnson & Johnson's (JNJ) Cordis Corp. says a U.S. district court in Delaware entered final judgment of $1.2 billion to Cordis on patents infringed by Medtronic (MDT) and Boston Scientific (BSX). Cordis says the cases involve the original palmaz balloon expandable stent patent. Medtronic was ordered to pay about $521 miilion, and Boston Scientific about $703 million. Merrill Lynch reportedly downgraded BSX to underperform.

Maurice R. "Hank" Greenberg, the former chief executive officer of American (AIG), has asked the company's CEO for the chance to bid on any assets the insurer plans to sell.

Deutsche Bank cut its EPS estimates and price target on General Electric GE), saying the adjustments largely reflect deterioration at GE Capital, driven by tighter credit markets, asset shrinkage and debt pay-down.

Diebold (DBD) raised its 2008 non-GAAP EPS guidance to $2.40-$2.45 from $2.25-$2.30, citing earlier-than-expected progress from its cost-reduction initiatives, improved profitability from its Brazilian voting and lottery businesses, continued demand for its solutions in global financial markets, and a lower anticipated effective tax rate.

Fitch Ratings says it has placed the AA- long-term and F1+ short-term Issuer Default Ratings (IDRs) of Northern Trust Corp. (NTRS) on Rating Watch Negative. Fitch also revised its Rating Outlook on Northern Trust Co. to Negative from Stable.

In 3,500 stores across U.S., Wal-Mart (WMT) reduced prices on some of the most popular toys. Also, over the next 10 days it will fast track the opening of Christmas shops in stores nationwide.