11:25 am : Selling pressure eases, but the major indices remain in the red.  Only three of the economic sectors are in positive territory.  The energy sector has had a notable reversal, as it is currently up 0.6% after being down as much as 1.0%.  Crude prices have rebounded from a 0.9% decline to a 1.2% advance.

Hewlett-Packard (HPQ 43.96, -2.87) is acting as a major drag on the stock market, with shares falling 6.2% -- the most in roughly four years.  Traders fear Hewlett-Packard is overpaying for its $13.9 billion acquisition of Electronic Data Systems (EDS 24.44, +0.36).DJ30 -78.00 NASDAQ -12.94 SP500 -5.08 NASDAQ Dec/Adv/Vol 1583/1084/609 mln NYSE Dec/Adv/Vol 1700/1236/395 mln

11:00 am : The major indices fall to fresh session lows.  With the exception of energy (unch), the decline has been broad-based. Financials are acting as the major drag, with the sector shedding 1.1%.

Earlier today, Oppenheimer cut its earnings for full year 2008 and 2009 on Goldman Sachs (GS 190.02, -2.06), Merrill Lynch (MER 48.62, -0.53), Lehman Brothers (LEH 43.30, -1.25) and Morgan Stanley (MS 46.60, -1.05).  Oppenheimer believes the outlook for financials is far more bleak than reflected in the market.DJ30 -72.06 NASDAQ -12.26 SP500 -5.85 NASDAQ Dec/Adv/Vol 1543/1081/507 mln NYSE Dec/Adv/Vol 1685/1228/326 mln

10:50AM Boston Scientific announces SPIRIT III results reaffirm strong performance of PROMUS and TAXUS Express Stents (BSX) 13.06 -0.37 : Co announces two-year results from the SPIRIT III clinical trial, which continue to reaffirm the proven long-term safety and efficacy of the market-leading TAXUS Express2 Paclitaxel-Eluting Coronary Stent System and reinforce the growing body of positive clinical evidence for the XIENCE V Everolimus-Eluting Coronary Stent System. The results demonstrated comparable safety and efficacy rates through two years for the XIENCE V and TAXUS Express Stents.

10:50AM ITT Industries reaffirms FY08 EPS of $4.00-4.10 vs $4.11 consensus (ITT) 66.15 -0.43 : Co reaffirms guidance for FY08 (Dec), sees EPS of $4.00-4.10 vs. $4.11 First Call consensus; sees FY08 (Dec) revs of $11.5 bln vs. $11.48 bln consensus.

10:41AM Oilsands Quest and Northern Village of La Loche agree to formalize economic relationship (BQI) 4.50 +0.19 : Co and the Northern Village of La Loche, Saskatchewan, announce the signing of a Memorandum of Understanding (MOU) regarding the establishment of an economic relationship between the two parties. La Loche is the largest community in close proximity to Oilsands Quests' permit lands in northwestern Saskatchewan. The MOU confirms the agreement between the parties to work together to identify and address the economic benefits, as well as environmental, social and other potential impacts on La Loche of Oilsands Quest's exploration activities on its permit lands. By way of the MOU, the parties agree to make reasonable commercial efforts to negotiate a formal exploration agreement that will deal with these matters and, furthermore, that the relationship and participation in a formal agreement will be available to all neighboring communities that are adjacent to and affected by Oilsands Quest's exploration activities.