NEW YORK, Dec 9 (Reuters) - Some U.S. stocks on the move on Tuesday:

FEDEX CORP

The shipping company cut its 2009 outlook, hurt as a weakening U.S. economy offset lower fuel prices.

Shares of the company tumbled 11 percent to $66.42 on Tuesday.

FORD MOTOR CO

GENERAL MOTORS

Ford is in talks to sell its Volvo car unit to its China partner, Changan Automobile Group, according to a report in the National Business Daily. Both Ford and GM are still trying to secure a government bailout that they hope will get them through a period of weakness in the industry.

Shares of Ford slid 3.6 percent to $3.24 before the bell while shares of GM, a Dow component, fell 2.6 percent to $4.80.

MERCK & CO

Pharmaceutical company Merck & Co Tuesday said it plans to break into biotech medicine, including generic versions, and push into emerging markets as it confronts a variety of near and long-term challenges to key medicines.

Shares of the company, a Dow component, slid 1 percent to $26.74.

HARRIS CORP

HARRIS STRATEX NETWORKS

The communications equipment company said it may sell Harris Stratex Networks, its microwave technology unit. Harris said the subsidiary wasn't a good fit with the rest of the company.

Harris shares rose 4.3 percent to $36.63 on Tuesday while Harris Stratex shares fell 1.5 percent to $4.06.

GOLDMAN SACHS

MORGAN STANLEY

KBW Tuesday lowered its view on both Goldman Sachs and Morgan Stanley, cutting its estimates on the two financial services companies.

The firm cut its price target on Goldman to $108 from $115 and forecast a fourth-quarter loss of $3.81 a share for the company. It previously saw a loss of $2.10 a share.

For Morgan Stanley, KBW forecast a loss of 19 cents a share. It previously saw earnings of 33 cents a share.

Goldman shares rose 18 cents to $77.32 on Tuesday while Morgan Stanley shares fell 1.8 percent to $16.01.

TEXAS INSTRUMENTS

NATIONAL SEMICONDUCTOR

Chip makers Texas Instruments and National Semiconductor both cut their current-quarter revenue outlook to below expectations late Monday. They cited lower demand for cell phones.

Shares of Texas Instruments rose 8 percent to $16 while National Semiconductor surged 16 percent to $11.96.

AMERICAN INTERNATIONAL GROUP

PRUDENTIAL FINANCIAL

Prudential, along with four other firms, is expected to place competing bids for two Japanese life insurers put up for sale by AIG, which is expected to select a buyer by the end of the week.

Shares of Prudential advanced 8.4 percent to $30.54 on Tuesday.

PEP BOYS-MANNY, MOE & JACK

The automotive parts and service chain posted a lower quarterly loss, but failed to beat market expectations, hurt by reduced spending and fewer miles driven by U.S. consumers amid a recession. Shares of the company plummeted 27 percent to $3.66 on Tuesday.

(Reporting by Ryan Vlastelica; Editing by Chizu Nomiyama)

((ryan.vlastelica@thomsonreuters.com; + 1 646-223-6014; Reuters Messaging: ryan.vlastelica@reuters.com@reuters.net)) Keywords: MARKETS STOCKS HEADLINES (Wall Street newsdesk; +1-646-223-6110)

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