Analysts downgraded the banking sector on continued exposure to significant loan losses. The Dow lost 75 points to 13,100 while Nasdaq fell 12 points to 2624.
On the upside
An analyst fueled speculation that satellite TV operator EchoStar (Nasdaq: DISH) may be acquired due to its low valuation.
An upbeat analyst day lifted shares of Qualcomm (Nasdaq: QCOM) despite lingering patent battles.
Micrel (Nasdaq: MCRL) entered the solar market signing a mult-million dollar deal to produce solar cells.
On the downside
Lowe's (NYSE: LOW) posted lower 3rd quarter profits which beat expectations. However, the home improvement retailer indicated that a persistent housing slump would cut into its full-year outlook.
The Campbell Soup Company (NYSE: CPB) posted lower earnings due to higher ingredient and advertising costs.
A Goldman Sachs downgrade of Citigroup (NYSE: C) warned of $8 to $11 billion in write-downs for the current quarter.
In the broad market, declining issues outpaced advancers by a margin of more than 4 to 1 on the NYSE and by a margin of nearly 3 to 1 on Nasdaq. The Russell 2000 which tracks small cap stocks dropped 10 points to 759.