• Ready, Aim, Report: Earnings season begins after close.


• Weak Signals: Stock drift lower on bank worries.


• Oil Falls: Crude drops below $50 a barrel.


• Horseless Carriage: GM and Segway unveil new urban vehicle.

The threat of greater losses at the world's financial insitutions left Wall Street cold Tuesday.

Stocks held substantial losses, as traders frowned on a report on toxic assets and awaited the unofficial start to earnings season. By 12:47 p.m., the Dow Jones Industrial Average had dropped 160 points to 7816. The Nasdaq had lost 29 at 1578, and the S&P 500 had given up 14 at 821.

Financials came some under pressure after a report that the financial system's toxic assets could hit $4 trillion. The article, which appeared in the Guardian, cited data from a forecast the International Monetary Fund plans to release on April 21.

Traders found little solace in comments made by Goldman Sachs Chief Executive Lloyd Blankfein, who called the financial sector's downturn "deeply humbling" for the industry.

Energy stocks declined as crude prices declined with the broader market. By 12:38 p.m., oil traded down $1.30 at $49.75 a barrel. Capital goods and telecoms also lost ground.

Earnings seaon gets underway when alumninum giant Alcoa (AA) releases its Q1 results after the closing bell. Analysts predict the firm's loss will have widened to 57 cents a share, up from a loss of 44 cents a share in the year-ago period.

No one expects a rosy quarter. Component firms of the S&P 500 are expected to reported an average decline of about 13.9%, according to Zack's. In addition to Alcoa, Bed Bath & Beyond (BBBY), Constellation Brands (STZ) and Family Dollar Stores (FDO) will report this week.

Nonetheless, Americans have grown more optimistic about the direction of the economy since the presidential inauguration, according to a poll conducted by The New York Times and CBS News. The poll showed an increase in the number of respondants who said they believed the country is headed in the right direction. The poll also revealed the lowest approval rating of the Republican Party of the last 25 years.

• 
  General Motors (GM) and Segway unveiled a new two-wheeled urban transportation device developed as a clearner alternative to traditional cars, the firms said. Project P.U.M.A. (Personal Urban Mobility and Accessibility), which looks like passenger car of a rickshaw, is powered by a lithium ion battery and has a top speed of about 35 miles an hour.


• 
  AIG (AIG) has attracted about six bidders interested in acquiring its $100 billion asset management portfolio, The Wall Street Journal reported. Buyers have submitted bids of between $400 million and $800 million, well below the industry standard of 1% of the portfolio itself -- in this case, $1 billion. The insurer hopes to complete a transation by the end of next month.


• Merrill Lynch, now a subsidiary of Bank of America (BAC) shut down the Japanese office of the firm's private equity division, Reuters reported. Sources said the closure stemmed from a lack of deals in Japan.

• The Februrary reading on consumer credit is scheduled to be released at 2 p.m. by the Federal Reserve. Economists expect consumer borrowing to have slipped $1.5 billion, down from a surprising $1.8 billion rise in January.

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