The markets opened lower on disappointing earnings news from General Electric. The Dow dropped over 100 points to 12,464 while Nasdaq tumbled 27 points to 2324.
On the upside
Merger talks between Delta (NYSE: DAL) and Northwest (NYSE: NWA) were moving forward after reaching a tentative contract agreement with Delta's pilots, according to Bloomberg News.
Longs Drug Stores (NYSE: LDG) reported higher same-store sales versus year-ago levels that beat targets as the stock bounced from a 52-week low.
On the downside
Shares of Frontier Airlines (Nasdaq: FRNT) plummeted after the discount carrier filed for bankruptcy in order to prevent its credit card processor from increasing its holdback. The company planned to continue operations.
General Electric (NYSE: GE) posted earnings that missed expectations due to weak performance from its financial services operations and a weak economy.
Shares of Foundry Networks (Nasdaq: FDRY) floundered after the Internet
service provider lowered its profit outlook due to a drop in orders. Analysts promptly downgraded the stock.
In the broad market, declining issues outpaced advancers by a margin
of more than 5 to 1 on the NYSE and by more than 3 to 1 on
Nasdaq. The Russell 2000 which tracks small cap stocks lost 9 points to 698.