Once again world markets sank on recession fears, and once again U.S. stock futures plunged, indicating the session may start on a considerable down note. But if Friday futures reached limit-down to stop trading and many feared the worse, that didn't materialized and the Dow fell "only" 3.6%. Today, oil dropped below $62 a barrel as the G7 expressed concern over the yen and the IMF announced rescue plans for Hungary and Ukraine. A little after the market opens, investors will look at data on September's new home sales. On Tuesday, a two-day meeting of the Federal Reserve begins, and many expect another coordinated rate cut from the world's major central banks. The Fed is expected to lower its fed funds rate by a half-point to 1 percent on Wednesday.
Verizon Communications (NYSE: VZ) reported 66 cents earnings per share this morning, inline with estimates on strong sales.
Goldman Sachs (NYSE: GS) -- the Financial Times reported Goldman's CEO Blankfein called Citigroup (NYSE: C)'s CEO Pandit last month to discuss a merger. While Pandit immediately turned down the suggestion and any further discussion on the matter, the news is making investors realize the severity of the financial crisis that Goldman was willing to lose its independence.
General Motors Corp. (NYSE: GM) continued to talk to rival Chrysler LLC over the weekend regarding a merger. As it stands now, investors are concerned that "without a merger and possibly an assist from the federal government, two of Detroit's Big Three auto makers could run out of cash within a year."
Morgan Stanley (NYSE: MS) -- with redemptions amounting to almost one- third of cash from money-market accounts last month, it forced the firm to buy $23 billion of securities. It's possible it was helped by the Federal Reserve.PepsiCo (NYSE: PEP) was upgraded at Deutsche Securities from Hold to Buy.
U.S. Steel (NYSE: X) was downgraded by UBS from Buy to Sell.
Nortel (NYSE: NT) was downgraded by UBS from Buy to Hold.
U.S. Justice Department turns an eye on the telecoms
Serious Money: Three stocks that beat the market
Closing Bell: The wishy-washy return to Q3 (AA, DDUP, EMC, DNDN, CVX, FSLR, GS)
