A sharp drop in new home construction sent the markets tumbling during the midday with the Dow plummeting 136 points to 12,330. Nasdaq dropped 18 points to 2377.
On the upside
BorgWarner (NYSE: BWA) expects 2008 results to meet or beat expectations due to strength in its international operations.
WCI Communities (NYSE: WCI) renegotiated the terms of its loan allowing the condominium builder more time and flexibility to repay debt.
Citigroup analyst Wendy Nicholson upgraded Alberto-Culver (NYSE: ACV) in anticipation of increasing sales.
On the downside
First Horizon National (NYSE: FHN) blamed losses in its mortgage banking business as well as greater loan loss provisions for widening fourth quarter losses.
Alliance Data Systems (NYSE: ADS) will provide Sharper Image with marketing services and will introduce a private label credit card program for the specialty retailer.
The Cosmopolitan Resort and Casino, which Perini (NYSE: PCR) is constructing, received a loan default notice.
In the broad market, declining issues outpaced advancers by a margin of nearly 4 to 1 on the NYSE and by more than 5 to 2 on Nasdaq. The Russell 2000 which tracks small cap stocks tumbled 13 points to 687.