Stocks Edge Off Lows on Fannie, Freddie News

Timothy Speiss, leader of Eisner LLP's Personal Wealth Advisors Group, said the worst-case scenario for GM is a bankruptcy declaration and reorganization of the company's financial obligation. The best case, said Speiss, is direct aid from the government, with strings attached.

As it stands, said Speiss, the automakers are a subsidized employment vehicle, and states with automakers account for a large portion of the recent rise in unemployment. He said that more cars should be fueled by something other than gasoline, and U.S. automakers have costs associated with pension and other benefits that are far beyond those of their competitors.

There's a separate problem, said Speiss. "Lack of consumer confidence is keeping buyers of cars out of showrooms," he said, and tightening lending standards are making it harder to buy cars. "It's very dubious that without connecting relief for GM ... to a broader strategy, it would be irresponsible to cut them a check," he said.

In the energy patch, Chesapeake Energy (CHK Quote) and StatoilHydro (STO Quote) announced a joint venture to seek additional natural gas resources.

Meanwhile, cigarette maker Altria (MO Quote) announced it would cut jobs in the face of an uncertain economic environment.

As for earnings, following Monday's close, coffee purveyor Starbucks (SBUX Quote) reported a decline in profit and fell short of analysts' estimates. The company also said it would not provide earnings guidance for the upcoming year.

Homebuilder Toll Brothers (TOL Quote) announced that its building revenue suffered a 41% decline for the latest quarter.

Telecom firm Vodafone (VOD Quote), meanwhile, announced falling profit for the first half of its fiscal year and reduced revenue guidance.