Stocks Down As Auto Bailout Hopes Dim

This is a transcript of the Market Update: Close video report.

Wall Street to a hit Thursday as stocks slipped in the final hours of trading. The Dow fell 196 points, the S&P 500 dropped 26 and the Nasdaq fell 58 points.

Bank of America (nyse: BAC - news - people ) said it will cut 30,000 to 35,000 jobs over the next three years as it completes its merger with Merrill Lynch (nyse: MER - news - people ). The company said the cuts will eliminate redundancies, and the final plan should be released in early 2009. Stocks dropped over 10% late in the day.

Other financials were in the red, led by JPMorgan Chase (nyse: JPM - news - people ). A UBS analyst slashed the price target on JPMorgan to $34 from $44, citing ongoing headwinds in the credit markets. Wells Fargo (nyse: WFC - news - people ) lost 11%. Citigroup (nyse: C - news - people ) fell nearly 9%.

In Washington, hope dimmed for the automaker bailout. With many Republican senators voicing dissent, the $14 billion rescue plan may not have enough votes to pass the Senate. General Motors (nyse: GM - news - people ) fell 10%; Ford Motor (nyse: F - news - people ) dropped 11%.

Oil rallied more than $3 to rest above $47. The world's biggest oil producer, Saudi Arabia, cut production by more than the traders and analysts had forecast last month. Royal Dutch Shell (nyse: RDSA - news - people ) and Chevron (nyse: CVX - news - people ) added 1%.

In tech, Microsoft (nasdaq: MSFT - news - people ) fell more than 5%, after a Morgan Stanley analyst cut profit estimates for the software maker in anticipation of a major slowdown in tech spending.