The markets plummeted during the midday as sales of existing homes fell and the median sales price dropped. The Dow skidded 145 points to 12,481 while Nasdaq plunged 28 points to 2437.

On the upside

While increased expenses weighed down first quarter earnings for Hibbett Sports (Nasdaq: HIBB), the results beat expectations.

First quarter earnings tumbled for Foot Locker (NYSE: FL) due to a significant impairment charge but revenue surpassed estimates and the athletic shoe retailer affirmed its full year outlook.

Natus Medical (Nasdaq: BABY) will offer 4 million shares of common stock at $19.50 per share.

On the downside

Hurcos Cos. (Nasdaq: HURC) reported higher second quarter earnings but the results fell short of estimates.

Polypore International (NYSE: PPO) epects to raise $180 million through a follow-on public offering of 7.5 million shares priced at $24.

The Wall Street Journal reported that hedge fund manager David Einhorn questioned the accuracy of Lehman Brothers Holdings' (Nasdaq: LEH) first quarter earnings report.

In the broad market, declining issues outpaced advancers by a margin of more than 3 to 1 on the NYSE and by nearly 5 to 2 on Nasdaq. The Russell 2000 which tracks small cap stocks plunged 11 points to 722.