Disappointing earnings along with a jump in jobless claims weighed down the markets during the midday with the Dow dropping 43 points to 13,850. Nasdaq tumbled 13 points to 2779.

On the upside

Galencia Group will acquire Aspreva Pharmaceuticals (Nasdaq: ASPV) in a deal valued at approximately $915.2 million.

Cantor Fitzgerald cited rising dry bulk rates for lifting the price target for Paragon Shipping (Nasdaq: PRGN).

Although third quarter earnings for Fairchild Semiconductor International (NYSE: FCS) slipped, the results surpassed expectations.

On the downside

Pfizer exited its partnership with Nektar Therapeutics (Nasdaq: NKTR) to jointly develop the inhalable insulin Exubera.

Shares of Vertex Pharmaceuticals (Nasdaq: VRTX) tumbled over news that rival Schering-Plough completed a successful mid-stage clinical trial of a hepatitis C treatment.

IMS Health (NYSE: RX) higher tax expenses for third quarter earnings that slipped to miss expectations.

In the broad market, declining issues outpaced advancers by a margin of more than 5 to 3 on both the NYSE and on Nasdaq. The Russell 2000 which tracks small cap stocks lost 4 points to 821.