Graphics shows US stock market slides on earnings jitters on Jan. 12, 2009.(Xinhua/Ma Yan) Photo Gallery>>>

    NEW YORK, Jan. 12 (Xinhua) -- U.S. stocks extended losses on Monday as a gloomy outlook of the coming earning season and a slump in the oil price weigh on the market.

    The report that Citigroup's fourth-quarter operating losses could top 10 billion U.S. dollars refreshed fears of the banks' losses in the credit crisis. Meanwhile, Citigroup and Morgan Stanley are working on a deal to combine their brokerage units, which will create the largest financial adviser.

    Citigroup shares slid more than 17 percent, which dragged down the banking sector. The S&P Financial index fell 5.7 percent.

    The largest U.S. aluminum producer Alcoa Inc kicked off the earnings season after Monday's closing bell with a loss. Ahead of the results, Deutsche Bank AG downgraded Alcoa to "sell" from "hold" and reduced its price estimate. Alcoa tumbled nearly seven percent.

    Energy shares lost ground Monday as the crude oil continued sliding. Oil price dropped below 38 dollars a barrel on the New York Mercantile Exchange as the market concerned that economic recession will cut demand for oil.

    The Dow Jones fell 125.21 to 8,473.97. Broader indexes also moved lower. The Standard & Poor's 500 index lost 20.09 to 870.26;and the Nasdaq slipped 32.80 to 1,538.79.