Stocks ended a turbulent trading session on Wednesday with modest losses hours ahead of a pivotal vote in Congress on the controversial $700 billion financial rescue plan. 

Today's Market

The Dow Jones Industrial Average lost 19.59 points, or 0.18%, to 10831.07. The broader S&P 500 Index fell 5.30 points, or 0.45%, to 1161.06, while the Nasdaq Composite Index slid 22.48 points, or 1.07%, to 2069.40. The consumer-friendly Fox 50 Index added 1.37 points, or 0.16%, to 863.40.

As has been the case for much of the past two weeks, the markets swayed along with the perceived odds that Congress will pass the financial rescue plan that failed in the House of Representatives just days ago. 

“People are taking a little bit of their chips off the table and waiting to find out what happens tonight” with the Senate rescue vote, said Ryan Detrick, equities analyst at Schaeffer’s Investment Research. “The big concern is if this bailout is going to be enough to bring confidence back to the credit markets.”

Aluminum giant Alcoa (AA) and IBM (IBM) led the way down on the Dow. A trio of financial giants led the index's percentage winners: Citigroup (C), Bank of America (BAC) and JPMorgan Chase (JPM). 

While Wednesday's headlines included a major vote of confidence in General Electric (GE) and a trio of mixed economic reports, all eyes on Wall Street were glued to the drama unfolding in Washington. 

Congressional leaders and President Bush expressed confidence the newly-modified rescue legislation will be approved by the Senate Wednesday night. Presidential candidates John McCain and Barack Obama are expected to participate in the historic vote.

"The bill is different. It's been improved and I am confident it will pass," Bush told reporters Wednesday afternoon. 

The bill, which was narrowly defeated in the House on Monday, would authorize the Treasury to buy $700 billion of toxic assets that have caused banks to scale back on lending. 

Additions that might garner support include a temporary increase on federally insured deposits to $250,000 from $100,000. This provision is seen as making it harder for politicians to vote against the bill, and preventing runs on banks like the ones that caused IndyMac and Washington Mutual (WM) to fail. 

Also, banks would likely benefit from a new provision that would allow them greater discretion when assessing the value of their toxic assets, including mortgage-backed securities. On Tuesday, the Securities and Exchange Commission issued a clarification on the accounting rules, known as “mark-to-market." 

The markets were also focusing on Europe's troubled economy as reports swirled that France has proposed a 300 billion euro rescue package. Germany reportedly opposes such a proposal and France denied the reports. Major European powers are slated to discuss a solution to the global credit crisis this weekend.

For the second week in a row, Warren Buffett made his influence felt by unveiling a major investment in a struggling financial company. Buffett purchased $3 billion of preferred shares in General Electric (GE) on Wednesday, helping to stop a double-digit slide in the company's shares.  

“He’s certainly doing more than the government, that’s for sure,” NYSE trader Jason Weisberg of Seaport Securities told FOX Business. “Warren knows how to sniff out value…I’d love to have that piggy bank.”

GE also backed its newly released 2008 earnings outlook and said it plans to raise $12 billion in common stock. The company has been under intense pressure on worries about GE Capital, the finance arm that GE relies on for 50% of its revenue. 

Meanwhile, crude prices tumbled back below $100 a barrel following a bearish oil inventory report. Crude closed down $2.34 to $97.92 a barrel.  The Department of Energy inventory report showed crude stockpiles rose by a larger-than-expected 4.3 million barrels last week. Gasoline stocks rose by 9.3 million barrels. 

Data Dump

Stocks weren't helped by a new report showing a big drop in manufacturing activity in September. The Institute for Supply Management's manufacturing index fell sharply to a 43.5 reading, compared to an expected reading of 49.5. A sub-50 reading indicates contraction. 

Also, the Commerce Department said U.S. construction spending was unchanged in August and private research firm ADP said private-sector payrolls fell by a lower-than-expected 8,000 jobs last month. 

Corporate Movers

Eli Lilly (LLY) is the mystery bidder offering $70 a share to acquire biotech giant ImClone (IMCL), The Wall Street Journal reported. In an effort to stave off a lower bid from Bristol-Myers Squibb (BMY), ImClone disclosed last month it was in buyout preliminary talks with an unnamed "large pharmaceutical company." 

Ford's (F) shares fell double-digit percentages after the automaker disclosed a 34.6% plunge in September sales, its worst sales month of the year. SUV sales dove by 40.6%, truck and van sales declined by 25.2% and car sales slid 6.3%. 

General Motors (GM) posted a 16% fall in September vehicle sales and backed its fourth-quarter production plans. Sales were weighed down by a 19.3% decline in light trucks sales. Car sales fell by a more modest 9.8%. 

Toyota (TM) joined in the sales slump, posting a 32% dive in U.S. September sales. 

National City (NCC) surged 65% higher on enormous volume ahead of the bailout vote in the U.S. Senate. The Cleveland-based bank's shares tanked 63% after the House defeated the controversial rescue legislation on Monday. 

Google (GOOG) had a brief scare late Tuesday after the search giant's shares plummeted 16% in two minutes. The Nasdaq Stock Market blamed the mysterious stock plunge on possibly "erroneous trades" at the end of the session that were subsequently canceled by the exchange, according to Dow Jones. 

Kohl’s (KSS) is opening 46 new stores as it fights to build market share ahead of what is expected to be a weak holiday shopping season, the Journal reported. 

Boston Scientific (BSX) saw its shares close lower after the medical-device maker lost a patent lawsuit, forcing it to pay $702.8 million in damages to Johnson & Johnson (JNJ).