The markets extended its losses during the midday with the Dow plunging 189 points to 12,988. Nasdaq skidded 41 points to 2597.

On the upside

Indian herbal healthcare products company Plethico Pharmaceuticals offered nearly $81 million to acquire Natrol (Nasdaq: NTOL).

Celgene will purchase Pharmion (Nasdaq: PHRM) in a cash and stock deal valued at approximately $2.9 billion.

Quanex (NYSE: NX) will sell its Vehicular Products business to Gerdau S. A. for nearly $1.7 billion and spin off the remainder of its business.

On the downside

UBS sued Finish Line and Genesco (NYSE: GCO) to be released from its obligation to fund Finish Line's $1.5 billion purchase of Genesco.

Tween Brands (NYSE: TWB) blamed the economy for reporting lower third quarter earnings and trimming its fourth quarter outlook.

Shares of Countrywide (NYSE: CFC) continued to fall over concerns of further mortgage defaults.

In the broad market, declining issues outpaced advancers by a margin of more than 5 to 1 on the NYSE and by a margin of more than 4 to 1 on Nasdaq. The Russell 2000 which tracks small cap stocks plummeted 17 points to 752.