After showing a steep decline earlier in the session, stocks are seeing continued weakness in late morning trading on Monday. The major averages are stuck firmly in negative territory, although they remain well off the lows set earlier this month.

The weakness in the markets comes as traders express concerns about the outlook for the auto industry after President Barack Obama's auto task force indicated that General Motors (GM) and Chrysler have not gone far enough in their restructuring plans.

Concerns about the impact that a potential bankruptcy filing by either GM or Chrysler could have on steel demand, steel stocks are turning in some of the market's worst performances. The Amex Steel Index is currently down 7.7 percent, pulling back further off its recent highs.

Banking stocks are also posting steep losses after Treasury Secretary Geithner said some banks could need additional assistance. Significant weakness is also visible among housing, airline, and technology stocks.

The major averages have been more or less rangebound in recent trading, lingering near their worst levels of the day. The Dow is currently down 270.65 at 7,505.53, the Nasdaq is down 55.07 at 1,490.13 and the S&P 500 is down 28.20 at 787.74.

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