Stocks Drop amid Worries About Bailout Plan

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Among Tuesday's stocks in the news, Bristol-Myers Squibb (BMY) increased its offer to buy ImClone Systems (IMCL) to $62 a share from its initial offer of $60 a share. Bristol-Myers intends to commence a tender offer, valued at about $4.7 billion, for all outstanding ImCLone shares it does not already own.

Merrill Lynch reportedly downgraded shares of General Electric Co. (GE) to neutral from buy.

Circuit City Stores (CC) expects to deliver second quarter results that are slightly better than the previously provided range of a loss from continuing operations before income taxes of $170-$185 million, before any unusual/non-cash charges. The company also said Philip J. Schoonover, chairman, president and CEO, has agreed to step down from those positions, effective immediately. Schoonover has also resigned as a director.

3Com Corp. (COMS) posted first-quarter non-GAAP earnings per share of 11 cents, vs. 3 cents one year earlier, on a 7% revenue rise.

Union Pacific (UNP) raised its $1.10-$1.20 third quarter EPS view to $1.28-$1.33. The company said lower diesel fuel costs and strong operating efficiency will more than offset the impact of recent hurricanes and lower shipment volumes. The company noted that widespread commercial power outages associated with Hurricane Ike have impacted its operations and limited the ability of its customers to resume production. Union Pacific's new EPS view includes a reduction of about 10 cents as a result of the hurricanes, primarily Ike.

Dollar Thrifty Automotive Group (DTG) announced that results in the third quarter continue to be affected by challenges in the areas of revenue per day and vehicle depreciation costs. The company said results are also expected to be affected by the bankruptcy of one of its tour operators. In light of performance to date, Dollar Thrifty said it's seeking an amendment to its senior secured credit facility.

DuPont (DD) named Ellen J. Kullman president and a director of the company effective Oct. 1 and CEO effective Jan. 1, 2009. DuPont says Charles O. Holliday, Jr., chairman & CEO, will serve as chairman of the company and as a member of the board until Kullman's expected succession as chairman.

European stock indexes finished solidly lower Tuesday. In London, the FTSE 100 index fell 1.91% to 5,136.12. In Paris, the CAC 40 index dropped 1.98% to 4,139.82. Germany's DAX index shed 0.64% to 6,068.53.

Japanese markets were closed for a holiday Tuesday. In Honmg Kong, the Hang Seng index plunged 3.87% to 18,872.85.

Treasury market

Treasuries didn't do much as the market awaited a clear picture of what the government will do to ameliorate the financial crisis, says S&P MarketScope. On Tuesday, the 10-year note rose 04/32 to 101-13/32 for a yield of 3.83%, while the 30-year bond edged down 02/32 to 101-08/32 for a yield of 4.42% amid worries the Treasury's financial system rescue plan will be delayed by congressional wrangling over details.

Andrews is managing editor of the Investing Channel for BusinessWeek.com .