Updated from 4:02 p.m. ESTStocks slumped again Thursday as an earnings miss at eBay ( EBAY) and a negative outlook from Qualcomm ( QCOM) raised new questions about earnings expectations. The Dow Jones Industrial Average closed down 68.50 points, or 0.65%, to 10,471.47, having now erased all but 20 points of its 2004 gain in the first three weeks of the new year; the S&P 500 lost 9.22 points, or 0.78%, to 1775.41; and the Nasdaq Composite was down 27.71 points, or 1.34%, to 2045.88, its lowest close since Nov. 10. The 10-year Treasury bond reversed midday to a gain of 4/32 to yield 4.16%, while the dollar was higher against the yen and lower against the euro. The day's action extended a losing streak for the markets that has left the Dow down 2.9% for 2005. The S&P is down 3%, and the Nasdaq has lost 6%. Volume was heavy with 1.69 billion shares trading on the NYSE; about 2.23 billion changed hands on the Nasdaq. Decliners beat out advancers by more than a 2-to-1 margin on both exchanges. "The overriding concern here is the prospects for earnings in 2005," said Joe Liro, equity strategist with Stone & McCarthy Research Associates. "I think most top-down analysts have been forecasting a pretty marked slowdown in earnings this year. Now, we've had a few disappointments and I think that's got the market on its heels." eBay was down 19.2% after saying fourth-quarter earnings and revenue both rose 41% from a year ago, slightly slower than analysts had hoped. The company also shaved several cents off its 2005 EPS estimate, though it boosted its revenue outlook. The stock fell $19.75 to $83.30. Other Internet companies also were lower on eBay's news, including Yahoo! ( YHOO), down 1.8%, and Google ( GOOG), down 1.7%. "When you see high-profile momentum names leading the way and missing earnings, it usually will not lead to a market that will react positively," said Barry Hyman, equity market strategist with Ehrenkrantz King Nussbaum. "The eBay story and the Qualcomm story are telling us that growth as expected in 2005 is at risk, and the market now has to deal with lowered expectations going forward. "Bear in mind, eBay is not the market," Hyman added. "eBay is the Internet, and it affects an industry analysis, not the whole market's analysis. I haven't changed my positive outlook on the market for 2005, but nevertheless, it's a negative as we enter this trading day."