NEW YORK - Stocks are falling sharply after a bigger-than-expected loss at Bank of America and a weak report from General Electric.

Bank of America says it lost more than $2 billion in the third quarter, more than analysts expected. One of the largest recipients of government bailout funds, the bank also set aside more than $11 billion to offset bad loans.

General Electric's quarterly profit dropped 44 percent, hurt by much lower earnings at its lending arm GE Capital. The reports suggest consumers and businesses are still having a hard time paying off their debts.

The Dow Jones industrial average is down 89 at 9,973. The Standard & Poor's 500 index is down 9 at 1,086, and the Nasdaq composite index is down 12 at 2,160.

THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP's earlier story is below.

NEW YORK (AP) - Stock futures moved lower Friday after a bigger-than-expected loss at Bank of America and a weak report from General Electric.

Bank of America Corp. said it lost more than $2 billion after preferred dividends in the third quarter, steeper than what analysts had been expecting. One of the largest recipients of government bailout funds, the bank also set aside more than $11 billion to offset bad loans.

The report, which followed slightly disappointing results from Citigroup Inc. and Goldman Sachs Group Inc. on Thursday, suggested that consumers and businesses are still having a hard time paying off their debts.

"It is, afterall, the largest consumer bank and it may have just offered up a reminder that financial strains in the household sector haven't gone away," said David Rosenberg, chief economist and strategist at Gluskin Sheff.

General Electric Co.'s report also showed signs of credit weakness. Its profit dropped 44 percent in the most recent quarter, hurt by much lower earnings at its financial unit, GE Capital, which loans money to a variety of businesses. Results though were slightly better than analysts' estimates.

Solid earnings reports from Google Inc., IBM Corp. and chip maker Advanced Micro Devices Inc. after the closing bell Thursday buffered the losses in futures.

Earnings reports from banks have been of particular focus for the market this week, as investors look for signs that credit losses are stabilizing, which would be the best indicator yet that the economy is improving.

A surprisingly strong profit from JPMorgan Chase & Co.