Wall Street Slips From Gains

Updated from 9:45 a.m. EST

Stocks in New York reversed from early gains midday Friday as investors took in more fourth-quarter earnings reports and some big changes in the banking sector.

The Dow Jones Industrial Average was down 90 points at 8122, and the S&P 500 slipped 11 points to 832. The Nasdaq fell 19 points to 1492.

In Treasuries, the 10-year note was recently down 1 10/32 to yield 2.3%, the 30-year was up 2 09/32, yielding 3%.

In the latest news, Circuit City (CC) said it will liquidate. The move will eventually add another 35,000 employees to the already staggering unemployment figures stemming from the economic downturn.

The Dow fell below 8000 on Thursday -- led by declines in Citigroup (C) and Bank of America (BAC) -- before rebounding to close in slightly positive territory. Investors, skeptical about the banks' multibillion-dollar losses and inability to function without more help, shook off those anxieties early Friday however.

Citigroup reported a fourth-quarter loss of $8.29 billion early Friday and said it will split its operations in two, separating its traditional banking business from its riskier assets. The disassembly follows a deal earlier in the week to combine its brokerage business with Morgan Stanley (MS).

Meanwhile, Bank of America sprung early results on investors. The bank lost $2.39 billion, or 48 cents a share, in the fourth quarter. The behemoth bank, which has struggled to swallow the acquisitions of Merrill Lynch and Countrywide, will now receive an additional $20 billion in support from the government. In a similar fashion to the deal the government struck with Citi last fall, the bank will guarantee to cover up to $118 billion in losses on loans and securities backed by residential and commercial real estate.