A sharp drop in consumer confidence along with earnings concerns sent the markets plummeting with the Dow skidding 247 points to close at 12,606. Nasdaq plunged 49 points to 2440.

On the upside

Better than expected sales in December prompted P. F. Chang's (Nasdaq: PFCB) to lift its fourth quarter guidance.

Imation (NYSE: IMN) blamed a one time charge for lowering its 2007 outlook but expects fourth quarter results to top expectations.

MBIA (NYSE: MBI) increased the yield of a $1 billion debt sale to 14% in order to generate more interest.

On the downside

Tiffany (Nasdaq: TIF) blamed disappointing holiday sales for trimming its full year guidance.

American Express (NYSE: AXP) warned that fourth quarter results will fall far short of expectations as spending slowed while delinquent payments rose.

Delayed contracts prompted Interactive Intelligence (Nasdaq: ININ) to lower its fourth quarter guidance.

In the broad market, declining issues outpaced advancers by a margin of more than 5 to 3 on the NYSE and by 5 to 2 on Nasdaq. The Russell 2000 which tracks small cap stocks plunged 16 points to 705.