US stocks down on credit worries; oil drops again

NEW YORK - Stocks are down in early trading, with investors still jittery about the nation's ailing banking system.

Wall Street was relieved to hear Federal Reserve chairman Ben Bernanke say Tuesday that the central bank might extend its lending efforts to investment banks. But with banks' second-quarter earnings arriving next week and more big losses predicted, investors are hesitant to begin buying. They're looking for a better sense of the overall health of U.S. companies.

In the first few minutes of trading, the Dow Jones industrial average is down about 22 points at the 11,209 level.

(Agencies)