Wall Street Feels Bailout Burnout

Landgraf said that he anticipates a reduction in dividends and cutbacks in expansion plans as companies try to preserve capital. "The uncertainty whether this bailout plan will do what it's intended to do to unfreeze the credit markets," he said. "If you have cash now, you certainly might want a little more of that because of the uncertainty."

Meanwhile, mining concern BHP Billiton (BHP Quote) gained approval from the Australian government to buy Rio Tinto (RTP Quote). BHP slipped 2.4% to $50.79, and Rio Tinto edged up 0.5% to $250.77.

In analyst actions, Exxon Mobil (XOM Quote) caught a Barclays Capital upgrade to overweight from equal weight. Barclays said that the company's market value per barrel of oil has fallen despite an increase in oil prices. The stock climbed 1.2% to $78.58.

Industrial conglomerate General Electric (GE Quote) suffered after a Deutsche Bank analyst projected declining earnings for the coming fiscal year. The company later issued a statement defending its credit position as default swaps on the company climbed and its stock price fell. The company said that it has been able to fund its business with corporate-paper sales.

GE announced a $12 billion offering of common stock to the public. GE also said Warren Buffett's Berkshire Hathaway (BRK.A Quote) would take a $3 billion stake in GE perpetual preferred stock. Shares dropped 3.9% to $24.50.

Auto sales were looking dismal. Ford (F Quote) reported a 34.6% year-over-year decline in September sales, its worst sales month this year. Wall Street had expected a 22% decline. The stock plummeted 13% to $4.55.