The markets traded in negative territory during the midday with the Dow dropping 47 points to 11,241 despite retreating oil prices. Nasdaq fell 7 points to 2238.

On the upside

Yahoo (Nasdaq: YHOO) stock rose over prospects that Microsoft (Nasdaq: MSFT) may renew its acquisition offer. Microsoft isued a statement saying that it may reopen negotiations if a new board is elected.

In an effort to regain its AA rating for its mortgage insurance business, Radian Group (NYSE: RDN) named Teresa Bryce to replace David Applegate as president of the company's mortgage insurance unit.

Ambac Financial (NYSE: ABK) will seek approval from insurance regulators to capitalize its Connie Lee subsidiary with an $850 million contribution.

On the downside

Interactive Intelligence (Nasdaq: ININ) warned that second quarter earnings will fall short of expectations due to disappointing sales.

The credit default swaps, or the cost to insure debt, of Fannie Mae (NYSE: FNM) and Freddie Mac (NYSE: FRE) both climbed approximately 10 basis points.

Analysts downgraded Marshall & Ilsley (NYSE: MI) after the regional bank warned of a second quarter loss.

In the broad market, advancing issues outpaced decliners by a margin of more than 2 to 1 on the NYSE and by more than 5 to 3 on Nasdaq. The Russell 2000 which tracks small cap stocks tumbled 9 points to 657.