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.
Dow Jones Industrial Average
was falling 44 points to 8546, and the
was down 6.5 points to 864. The
slipped 13 points to 1478.
The automakers were again in focus on Thursday. Earlier in the week,
headed 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.
The Wall Street Journal
reported that the
may 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
, along with director and senior adviser Robert Rubin, were willing to go without bonuses this year, according to a report by the
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
intends to buy Chevy Chase Bank for $520 million in a cash-and-stock deal.
The bout of layoffs and tempered guidance was not confined to the financials. Telecom company
announced workforce reductions of 12,000, or about 4% of its employees, while
set plans to cut 2,500 workers.
"I'm not surprised," said Fred Dickson, chief market analyst at DA Davidson. "Given the depth of the recession, we're just going to see more of the same over the next three to six months." He also said that AT&T's planned layoffs, at 4%, weren't shockingly large, however. "In a given year, that may be close to a normal turnover amount anyway."
Dickson also said that the layoff announcements are directing investor attention to employment ahead of tomorrow's November nonfarm payrolls data. He said that the market appears to be taking the layoffs in stride, as it avoided a large gap down at the open.
reported preliminary fourth-quarter results that were ahead of expectations, but also announced plans for an 8% reduction in headcount.
also announced job cuts and said it would put a raise freeze on some senior-level positions.
In the pharmaceutical space,
reaffirmed its 2008 earnings projections but projected 2009 results would fall short of analysts' current estimates.
said its fourth-quarter loss narrowed year over year and said its revenue in the coming year would fall substantially from current levels.
In one bright spot, retail giant
announced its same-store sales rose 3.4% in November.
Across the board, however, the
November same-store sales
picture was less encouraging.
were among companies to announce slackening sales.
reported that management at GM and Chrysler were contemplating a prearranged bankruptcy as a means to get government funds.
Turning to economic data, the Labor Department said jobless claims for the week ended Nov. 29 fell 21,000 to 509,000. The result was better than economists' forecast of 540,000 claims for the week. Separately, the Census Bureau's October read on factory orders showed a 5.1% decline, a larger drop than the 4% consensus estimate.
Speaking in Washington,
Chairman Ben Bernanke said that the government needs to take further steps to stop home foreclosures. He said that one option is for the government to buy troubled mortgage securities, and another is for federal agencies to help shoulder the costs of reductions in borrowers' monthly payments.
As the financial crisis was felt overseas, the Bank of England cut its key interest rate by one percentage point to 2%, and the
European Central Bank
reduced its rate to 2.5% from 3.25%. France also announced a $33 billion economic stimulus plan.
Looking at commodities, crude oil was down $2.16 to $44.63 a barrel. Gold was gaining $3.50 to $769 an ounce.
Phil Flynn, vice president and energy analyst at Alaron Trading, said that previous growth in demand for oil had been fueled by cheap credit. "With the global slowdown and the unavailability of credit, it's going to be very difficult to maintain those price levels," he said. "Don't be surprised to see $35 a barrel. ... We could be in a new era of lower energy prices for years to come."
He said that after investors realized that the developing world's growth was not insulated from credit troubles among developed countries, "We've gone from running out of oil to having an oil glut. We have more oil than we know what to do with." Flynn said there will eventually be another boom cycle for oil, but it's years away.
Longer-dated U.S. Treasury securities were rising in price. The 10-year note was up 20/32, yielding 2.59%, and the 30-year was adding 1-21/32 to yield 3.09%. The dollar was losing ground against its major foreign competitors.
Abroad, European exchanges, including the FTSE in London and the DAX in Frankfurt, were trading lower. In Asia, Japan's Nikkei and Hong Kong's Hang Seng finished on the downside.