Stocks Slide Lower

Updated from 12:38 p.m. EST

Stocks in New York were losing ground Tuesday afternoon as investors digested the latest corporate earnings warnings and awaited word from the White House on a prospective bailout of the U.S. automakers.

All three major indices were lately trading with losses. The Dow Jones Industrial Average was down 187 points at 8746, and the S&P 500 was slumping 14 points at 895. The Nasdaq was lower by 12 points at 1558.

While the solidification of an automakers' bailout seemed imminent on Monday, according to those involved, the details remain unresolved. Under proposed legislation submitted to the White House Monday afternoon by Congress, the Big Three automakers -- Ford (F), General Motors (GM) and Chrysler -- would receive up to $15 billion in emergency aid.

Under the plan, the federal government would tap an existing loan program meant to help the automakers build fuel-efficient vehicles. The legislation would also permit the U.S. government to receive warrants for stock that equate to at least 20% of loans given to the automakers.

A federal official, dubbed the "car czar," would oversee a government-run retooling of the automakers. And the United Auto Workers (UAW) union might request an equity stake or board seat in one of the automakers in return for making contract concessions to help the automakers, according to a report in The Wall Street Journal.

Meanwhile, retail data released Tuesday showed continued sales weakness. The International Council of Shopping Centers weekly chains stores data showed a 0.8% drop in sales for the week of Dec. 6 compared to the week prior. The Johnson Redbook Retail Sales Index showed an 0.8% decline for the same week compared to the month prior.