Continued concerns that the housing downturn may lead to a recession sent the markets tumbling to a close with the Dow falling 66 points to 13,249. Nasdaq dropped 17 points to 2620.

On the upside

Canadian Solar (Nasdaq: CSIQ) will raise funds by selling up to $86.25 million in senior convertible notes to insitutional buyers.

Shares of LDK Solar (NYSE: LDK) soared after Cowen & Co. analyst Rob Stone commented that Congress appears to be considering renewable energy tax credits.

Banana tariffs may be reduced in the European Union sending shares of Chiquita (NYSE: CQB) higher.

On the downside

Shares of Blackberry maker Research in Motion (Nasdaq: RIMM) fell after analysts said that Apple iPod and iPhone sales are strong.

To repay debt, Hologic (Nasdaq: HOLX) will raise funds through the offering of $1.3 billion in notes.

JPMorgan downgraded Morgan Stanley (NYSE: MS) saying that more bad mortgage write-offs will hurt the company's valuation.

In the broad market, declining issues outpaced advaners by a margin of nearly 2 to 1 on both the NYSE and on Nasdaq. The Russell 2000 which tracks small cap stocks tumbled 8 points to 752.