Stocks Make Way Off Lows Despite More Grim Data

Still another indicator came from the Conference Board, who said its October leading indicators index fell 0.8%, a greater decline than the 0.6% forecast by analysts.

The automakers remained in the spotlight, as the prospects of government aid for General Motors (GM Quote), Ford (F Quote) and Chrysler appeared to diminish as the Senate, which heard testimony from CEOs of the Big Three on Tuesday and Wednesday, deadlocked on the proper course of action and canceled a Thursday vote on the issue.

GM also announced it would be cease production at one of its Thailand facilities for as much as two months.

Separately, the Financial Times, citing a person familiar with recent discussions, reported that Chrysler is looking to reinvigorate merger discussions with GM as the companies face increasing cash-flow troubles.

As the help from Congress looked less likely, GM's partly owned financing arm GMAC applied with the Federal Reserve to become a bank-holding company, a transformation that would secure it access to funds offered by the Troubled Asset Relief Program.

Turning to financial companies, Citigroup (C Quote) shares looked ready to recover from a 20% drubbing during the previous outing, as Saudi billionaire Prince Alwaleed, the largest individual shareholder in Citi, announced he would raise his stake in the staggering bank to 5% from 4%.

Alwaleed also endorsed Citi CEO Vikram Pandit, saying management is doing all necessary steps to survive the current climate.

Also on the Dow, Boeing (BA Quote) said it would lay off 800 workers in a Kansas facility thanks to delays and terminations of various projects.