U.S. Stocks Continue Their Slide

Updated from 10:17 a.m. EDT

U.S. stocks were trading with losses Thursday, as traders took in a flood of corporate earnings statements, saw evidence of additional turmoil in the financial sector and stomached a fresh serving of economic data.

The Dow Jones Industrial Average was down 235 points to 8342, and the S&P 500 lost 25 points to 882. The Nasdaq was slipping 33 points to 1594.

On Wednesday, stocks suffered heavy losses as traders turned their attention away from an internationally coordinated solution to the credit crisis to focus on an increasingly weak domestic economy.

Ahead of the new trading day, Swiss bank UBS ( UBS) received a $5.3 billion cash injection from the Swiss government in exchange for a 9% equity position in the company. UBS and the Swiss National Bank also reached an agreement for UBS to transfer up to $60 billion of currently illiquid securities and other assets from its balance sheet to a separate fund.

There was trouble back in the U.S. as well. Bloomberg reported that Citadel Investment Group's largest hedge fund lost as much as 30% this year on bad bets in convertible bonds, stocks and corporate debt.

Corporate earnings will once again be in focus. Following the close Wednesday, online auctioneer eBay ( EBAY) swung to a third-quarter profit but said its core business may face difficulties ahead.

Quarterly results from financial firms continued to reflect the impact of the credit crunch. Citigroup ( C) reported a third-quarter loss that was narrower than the Street had forecast.

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