Roiling Stocks Gather More Losses

Meanwhile, a report by Bloomberg indicated the Fed is attempting to become the main regulator for the credit-default swaps market. The Fed and other government agencies are working to develop a clearinghouse for the $33 trillion CDS market.

In a further sign of trouble in the financial sector, Reuters reported that Morgan Stanley's (MS Quote) chief financial officer said the company would lower its headcount by 9% after already cutting jobs 10% earlier this year.

The government also was moving toward aid for the automakers. House Speaker Nancy Pelosi suggested financial assistance for the industry, which includes General Motors, Ford and Chrysler. GM and Ford last Friday announced troubling quarterly losses that led some to question the future viability of the U.S. auto sector.

In the energy sector, Exelon (EXC Quote) announced it would take its buyout bid for NRG Energy (NRG Quote) straight to shareholders after NRG on Monday rejected Exelon's offer.

Staying on the merger front, Anheuser-Busch (BUD Quote) shareholders approved sale of the beer developer to Belgian brewery InBev.

As for technology companies, Microsoft (MSFT Quote) is working on a deal with Verizon (VZ Quote) to provide the default search software for Verizon Wireless' phones, according to a report by the Journal.

Among corporate earnings, Dutch financial firm ING (ING Quote) swung to a quarterly loss on losses related to the financial crisis.

In retail, department store operator Macy's (M Quote) announced a third-quarter loss on declining sales. Elsewhere among merchants, electronics vendor Best Buy (BBY Quote), citing declines in consumer spending, lowered its earnings forecasts for the remainder of its fiscal year.