Wall Street Deflates 3% on Jobs Data, Profit Warnings

Obama said the estimated $775 billion economic stimulus plan, which will call for dramatic investments and save or create 3 million jobs, is necessary to lay a solid foundation for future growth. Still, reiterating comments from a day prior, the president elect said he expects to inherit a trillion-dollar-plus deficit, pledging to scour the budget, line by line, as he works to achieve accountability.

Speaking of accountability, Bernard Madoff and Rod Blagojevich won't be the only scandals to unravel into 2009. The chairman of India's Satyam Computer (SAY Quote) said Wednesday that the company had inflated profits for several years, but could no longer hide a $1 billion hole after a prospective deal fell apart. Satyam's American depositary shares fell about 90% to 85 cents Wednesday.

Major holders in Satyam include Aberdeen Asset Management, with a 9.2% stake as of Oct. 10, and Fidelity Investment, which held more than 4%, according to MarketWatch.

Meanwhile, a gaggle of warnings helped to discourage the market early Wednesday as companies positioned investor expectations for upcoming earnings reports.

Intel said it expects to miss its previous guidance with fourth-quarter revenue 23% below last year because of weak demand and inventory reductions.

Also, media giant Time Warner (TWX Quote) said Wednesday that it expects to report a net loss for 2008, after prior expectations for a gain. The company said legal and lease-restructuring charges, in addition to the challenging economic environment were to blame. Shares fell 6.3% at $10.29.

Meanwhile, General Motors (GM Quote), which has been granted a $13.5 billion bridge loan, has said it has sufficient capital to cover the worst-case scenario it described last month and won't need more if the economy stabilizes, according to a Bloomberg report. The aid, in addition to the government's infusion of $5 billion into its financing arm GMAC, "meets our liquidity needs under the scenarios outlined in our December plan to Congress," a GM spokesman told Bloomberg.