Higher wholesale inflation sent the markets tumbling during the midday with the Dow dropping 72 points to 13,402. Nasdaq fell 24 points to 2647.

On the upside

Rigel Pharmaceuticals (Nasdaq: RIGL) reported positive midstage trial results for its rheumatoid arthritis treatment R788.

An article on the New York Times' website said that Lufthansa was negotiating with JetBlue Airways (Nasdaq: JBLU) to purchase a stake in the company.

MoneyGram International (NYSE: MGI) rejected a $20 per share unsolicited acquisition offer from Euronet Worldwide (Nasdaq: EEFT).

On the downside

The Food and Drug Administration requested more data from Neurocrine Biosciences (Nasdaq: NBIX) for its insomnia treatment indiplon.

American Dental Partners (Nasdaq: ADPI) may have to pay compensatory damages of $88.3 million after a jury found the company liable for breaching a service agreement.

Biogen Idec (NYSE: BIIB) ended its search for a buyer after a two month process that failed to produce any offers.

In the broad market, declining issues outpaced advancers by a margin of more than 4 to 1 on the NYSE and by more than 5 to 2 on Nasdaq. The Russell 2000 which tracks small cap stocks tumbled 11 points to 760.