Stocks Churn on Layoffs, Weak Retail Sales

Updated from 12:47 p.m. EST

Stocks on Wall Street were off the day's lows in spiky trading Thursday afternoon, but volatility persisted as a slew of big-name companies announced layoffs, many retailers announced weak November same-store sales and the automakers appeared before Congress in search of a government bailout.

The Dow Jones Industrial Average was falling 44 points to 8546, and the S&P 500 was down 6.5 points to 864. The Nasdaq slipped 13 points to 1478.

The automakers were again in focus on Thursday. Earlier in the week, General Motors (GM Quote), Ford (F Quote) and Chryslerheaded to Capitol Hill to seek government help as they navigate a precarious market climate. On Thursday, the CEOs of the Big Three once again were testifying before Congress about potential bailout legislation.

The current proposal involves a financial-aid package totaling $34 billion. Congress had earlier rejected a $25 billion plan.

Elsewhere, The Wall Street Journal reported that the Federal Reservemay refuse to lend directly to the automakers, a decision that would hand the companies' futures over to Congress and the Bush administration.

Layoffs and salary reductions also were dominating the day's early headlines. Executives at Citigroup (C Quote), along with director and senior adviser Robert Rubin, were willing to go without bonuses this year, according to a report by the Financial Times.

Swiss bank Credit Suisse (CS Quote) announced plans to cut 5,300 jobs and said it expects to report a $2.5 billion fourth-quarter loss.

In other financial-sector news, The Wall Street Journal reported that credit card company Capital One (COF Quote) intends to buy Chevy Chase Bank for $520 million in a cash-and-stock deal.