Disappointing earnings news sparked recessionary fears during the midday sending the markets tumbling with the Dow plummeting 212 points to 12,567. Nasdaq plunged 51 points to 2428.
On the upside
Matria Healthcare (Nasdaq: MATR) retained the services of The Maren Group LLC to explore strategic options to increase shareholder value including the possibility of selling the company.
Ocwen Financial (NYSE: OCN) chairman and CEO William C. Erbey led an investor group in its bid to purchase all outstanding shares of the company.
First American (NYSE: FAF) announced plans to spin off its title insurance business and its specialty insurance unit into a new company.
On the downside
Coldwater Creek (Nasdaq: CWTR) blamed lower same store sales for lowering its fourth quarter guidance prompting a downgrade.
Net unrealized losses for MoneyGram International (NYSE: MGI) soared as the value of its asset backed securities tumbled.
While New Oriental Education and Technology Group (NYSE: EDU) reported higher second quarter results that surpassed expectations, the private educational services provider forecast third quarter results that were in line with expectations.
In the broad market, declining issues outpaced advancers by a margin of more than 4 to 1 on the NYSE and by nearly the same on Nasdaq. The Russell 2000 which tracks small cap stocks plunged 16 points to 696.