11:30AM New York – U.S. stocks trade lower and weak dollar and UBS estimate of credit market losses rising to $600 billion.

Personal consumption in January rose 0.4% from December after the December data was revised higher to 0.3% from 0.2%. Prices, excluding food and energy, increased 0.3%, compared with an increase of 0.2% in December. The total index including food and energy has come to be viewed as a more indicative of the real cost increases for the consumers and most people.

Personal income increased $32.2 billion, or 0.3%, and disposable personal income increased $46.6 billion, or 0.4%, in January, according to the Bureau of Economic Analysis.

Personal consumption expenditures (PCE) increased $39.9 billion, or 0.4%. In December, personal income increased $54.0 billion, or 0.5%, DPI increased $46.0 billion, or 0.4%, and PCE increased $32.0 billion, or 0.3%, based on revised estimates.

UBS analyst Geraud Charpin in a research note to clients suggested that the losses related to credit market may rise as high as $600 billion. So far declared banks have declared $165 billion in losses and as recently as German Finance Minister had suggested that losses can reach as high as $400 billion in a conference after the G 7 meeting. Leveraged loans and mortgage securities continue to unwind in the wake of illiquid markets the values of these securities keep falling.

AIG (AIG: chart) reported that its net income for full year 2007 was $6.20 billion or $2.39 per diluted share, compared to $14.05 billion or $5.36 in 2006. Net income, as reported, includes the effect hedging activities.

Full year 2007 adjusted net income was $9.31 billion or $3.58 per diluted share, compared to $15.41 billion or $5.88 in 2006.

The net loss for the fourth quarter of 2007 was $5.29 billion or $2.08 per diluted share, compared to net income of $3.44 billion or $1.31 per diluted share in 2006. The adjusted net loss for the fourth quarter of 2007 was $3.20 billion or $1.25 per diluted share, compared to adjusted net income of $3.85 billion or $1.47 per diluted share in 2006.

AIG stock dropped 7% or $3.35 to $46.80.

Dell (DELL: chart) today reported results for its fourth quarter of fiscal year 2008, with revenue up 10% year-over-year to $16 billion, unit growth of 19%, operating income of $776 million and earnings per share of $0.31. Revenue for the full fiscal year was $61.1 billion, an increase of 6% year-over-year and earnings per share grew 15 percent to $1.31.

Revenues in the North and South America were up 7% for the quarter and shipments increased 13% driven by a 22% increase in revenues from Americas International. Revenue in Brazil, a key emerging country for Dell, grew 52%.

Dell maintained its No. 1 position in the U.S. commercial segment with 35% of all units shipped in the quarter, according to industry analyst estimates