Before the bell: Stocks to drop; GOOG. GM, F, AAPL, BHP ...

Posted Oct 1st 2008 8:14AM by Melly Alazraki
Filed under: Before the Bell, Deals, Google (GOOG), Apple Inc (AAPL), Daimler (DAI), Ford Motor (F), General Motors (GM), Exxon Mobil (XOM), Market Matters, Economic Data, BHP Billiton Ltd ADR (BHP), Rio Tinto plc ADS (RIO), Financial Crisis

U.S. stock futures were lower Wednesday morning after two volatile sessions that recorded a 777 point drop in the Dow, then a remarkable 485 point recovery. No doubt, investors are jittery ahead of the vote in the Senate today on the controversial $700 billion bailout package. Will it pass in the Senate after failing in the House? The two plans are slightly different. Some data might also affect the mood today with the Institute of Supply Management's manufacturing index for September and the September ADP employment estimate on tap. For now, the indication calls for a selloff in stocks at the start of trade today.

Google Inc. (NASDAQ: GOOG) - the Nasdaq Stock Market canceled a few trades in Google late Tuesday following an inexplicable slide in price the exchange blames on mistaken routing from other exchanges. Google shares, which were trading up about 8% for most of the session, fell between 10%-16% in the final minutes, bringing its closing price to $341.39. The Nasdaq also reset the stock's closing price at $400.52. Google shares are up in pre-market trading to about $409.

Automakers also are due to report monthly auto sales for September. Sales for GM (NYSE: GM) and Ford (NYSE: F) are expected to be weak, perhaps the worst in several years. Shares of Ford decline over 5% in after-hours Tuesday.

Daimler (NYSE: DAI) shares declined nearly 8% in pre-market trade after some rumors, denied by the company by now, suggested DAI would issue a profit warning.

BHP Billiton Ltd. (NYSE: BHP) - the company's long journey into acquiring rival Rio Tinto (NYSE: RTP) just cleared another hurdle as the Australia's competition regulator said it will not oppose the $119 billion bid. Now European regulators still have to give their nod.

Exxon Mobil Corp. (NYSE: XOM) - the giant oil company was fined 676 million euros ($957 million) by European Union regulators over claims it participated in a cartel that fixed the price of paraffin wax used in candles, paper cups and plates. Total SA and Eni SpA were also fined.

Apple Inc. (NASDAQ: AAPL) - Apple has threatened to close the iTunes Music Store as music publishers have seek a bigger piece of the pie from the most successful online, digital music store, by requesting The Copyright Royalty Board to hike up their royalty rates for songs purchased from online music stores like iTunes. The national Music Publishers' Association wants rates raised from 9 cents to 15 cents a track -- a 66% hike -- and the decision should be made Thursday. Apple opposes the move, of course, and has threatened in the past to close the store rather than hike prices it charges consumers.

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