Stocks slip on earnings worries

NEW YORK (CNNMoney.com) -- Stocks slipped Thursday morning as investors mulled weak earnings from Bank of America and Washington Mutual, record-high oil prices and a falling U.S. dollar.

The Dow Jones industrial average (Charts) lost a few points around 90 minutes into the session, while the S&P 500 (Charts) index lost 0.2 percent. The Nasdaq composite (Charts) lost 0.5 percent.

All three major gauges had been weaker in the first hour of trading.

Stocks see-sawed Wednesday amid upbeat earnings and record-high oil prices. But the earnings news was less upbeat Thursday, while oil prices continued to push higher.

Bank of America (Charts, Fortune 500) reported quarterly sales and earnings that fell from a year earlier and missed analysts' expectations, on a setback for the company's investment banking business in response to the summer's financial market mess. Shares slipped 3 percent.

Washington Mutual (Charts, Fortune 500) late Wednesday reported weaker earnings that missed estimates, due partly to problems in the housing sector. The stock fell 6.7 percent.

E-Trade Financial reported a quarterly loss versus a profit a year ago on revenue that fell from a year ago, due to the troubled mortgage market. E-Trade (Charts) shares fell 7 percent.

eBay (Charts, Fortune 500) reported a third-quarter loss due to big charges associated with its Skype telecom purchase. However, sales and earnings excluding charges rose and topped estimates. The online auctioneer also said that 2007 profits would top forecasts.

On Thursday morning, Deutsche Bank downgraded eBay to "sell" from "hold," AP reported, on worries about the company's growth prospects.

Pfizer (Charts, Fortune 500) reported quarterly sales and earnings that dropped from a year ago, but nonetheless topped analysts' forecasts.

So far 19 percent of the S&P 500 has reported quarterly results and the results have been weak as expected. Earnings are forecast to have fallen 0.2 percent versus a year ago, according to the latest figures from tracking firm Thomson Financial.

In economic news, the number of Americans filing new claims for unemployment rose last week by a greater-than-expected amount.

The index of leading economic indicators, released after the start of trade, rose 0.3 percent in September, as expected. LEI fell a revised 0.8 percent in August.

Due later in the session is the Philadelphia Fed index, a regional manufacturing index.

U.S. light crude oil for November delivery rose $1.35 to $88.75 a barrel after hitting an all-time high of $89 a barrel Wednesday on inventory concerns and worries about fighting between Turkey and Iraq.

Treasury prices rallied, lowering the yield on the benchmark 10-year note to 4.51 percent from 4.55 percent late Wednesday. Bond prices and yields move in opposite directions.

In currency news, the dollar fell to another all-time low versus the euro and also dipped versus the yen.

Dollar-traded commodities including gold rallied on the weak dollar. COMEX gold for December delivery rose $6.80 to $769.10 an ounce.