Record oil prices sent the markets tumbling to a sharply lower close with the Dow plummeting 112 points to 12,582. Nasdaq plunged 22 points to 2332.

On the upside

Hospira (NYSE: HSP) reported sharply higher fourth quarter earnings that beat expectations by 6 cents and forecast 2008 results ahead of estimates.

Higher prices boosted third quarter earnings for Del Monte (NYSE: DLM) to surpass estimates prompting the company to lift its full year outlook.

Fluor (NYSE: FLR) reported fourth quarter earnings that more than tripled due to a substantial tax benefit and higher sales.

On the downside

Borland Software (Nasdaq: BORL) blamed a difficult spending environment for widening fourth quarter losses and forecast 2008 revenue below estimates.

MF Global (NYSE: MF) fired trader Evan Dooley after incurring nearly $142 million in losses through unauthorized trades.

Limited Brands (NYSE: LTD) reported lower fourth quarter earnings due to markdowns and slow foot traffic and warned that first quarter results will fall short of estimates.

In the broad market, declining issues outpaced advancers by a margin of nearly 7 to 3 on both the NYSE and on Nasdaq. The Russell 2000 which tracks small cap stocks tumbled 11 points to 706.