Stocks Off to Losing Start

Updated from 8:56 a.m. EST

Stocks in New York sagged at the open Wednesday, as traders eyed the prospect of a bailout for the automakers and began digesting an array of economic reports.

The Dow Jones Industrial Average was down 173 points at 8246, and the S&P 500 was losing 18 points to 830. The Nasdaq dropped 34 points to 1416.

During Tuesday's trading session, the major averages finished with gains in a rebound from a broad selloff on Monday. Tuesday's rally was bolstered somewhat when General Electric (GE Quote) narrowed its earnings forecast but said it would maintain its dividend.

Automakers Ford (F Quote) and General Motors (GM Quote) also presented business plans to Congress in hopes of garnering a federal bailout.

Toyota (TM Quote), meanwhile, announced it would cut production in December and reduce managers' winter bonuses as it copes with the economic downturn.

Ahead of Wednesday's trading, numerous companies announced changes in their business models and financial policies as the economic environment shifted. Among financial firms, The Wall Street Journal reported that Goldman Sachs (GS Quote) was thinking about starting an Internet banking business.

Separately, Bank of America (BAC Quote) may reduce its headcount by 30,000 as it merges with Merrill Lynch (MER Quote), according to a report by CNBC.

Elsewhere, mining company Freeport-McMoRan (FCX Quote) said it was suspending its dividend on declines in copper and molybdenum prices.

BlackBerry maker Research In Motion (RIMM Quote) cut its third-quarter revenue and earnings-per-share forecasts, saying a stronger dollar and weaker U.S. economy would hurt its results.

On the merger front, Electricite de France said it was planning to issue a bid of $4.5 billion for U.S. power company Constellation Energy (CEG Quote).