Wall Street gave back some of last week's big gains Monday as euphoria over the government's expected stimulus bill waned amid more grim corporate news.
Wall Street opened lower on Monday after hopes ebbed over the proposed government stimulus plan, and grim corporate earnings loomed in the week ahead.
The Senate is expected to pass an $827 billion stimulus bill on Tuesday, however the government still faces the challenge of reconciling the bill with the House's $819 billion version that passed earlier.
The plan, designed to pull the economy out of the recession, Republicans and Democrats have been at odds over the plan. President Barack Obama is still pressing to have the stimulus measure on his desk for signing by the middle of this month.
Treasury Secretary Tim Geithner is expected to outline a plan to overhaul the governments $700 billion bailout package past last fall. Geithner had been scheduled to announce the plan Monday, but the White House pushed back the speech to focus on the stimulus bill.
Along side anxiety surrounding government action, there were plenty of signs that the economy was still waning.
Nissan said it will slash 20,000 jobs, or 8.5 percent of its global work force, over the next year to cope with what the Japanese automaker expects will be its first annual loss in nine years.
Home appliance maker Whirlpool Corp. said fourth-quarter profit dropped 77 percent, hurt by a restructuring charge, a recall expense and the stronger dollar.
Meanwhile, Barclays PLC warned that further asset write-downs — on top of the massive $11.9 billion booked for 2008 — were likely and said executive directors would not be getting any bonuses.
In the first hour of trading, the Dow Jones industrial average fell 26.53, or 0.32 percent, to 8,254.06.
Broader stock indicators also fell. The Standard & Poor's 500 index fell 1.10, or 0.13 percent, to 867.60, and the Nasdaq composite index fell 5.58, or 0.35 percent, to 1,586.13.
Last week the Dow ended the week up 3.5 percent on anticipation of the new stimulus bill, largely overlooking poor earnings and massive job cuts reports during the week.