No Debt Reduction Agreement, Markets Close Lower

Congressional leaders were unable to reach a deal to reduce the deficit sending the markets down to a lower close with the Dow dropping 88 points to 12,592. Nasdaq fell 16 points to 2842.

On the upside

Allied Irish Banks (NYSE: AIB) reversed year ago losses to post a profit for the six months of 2011.

Seven Arts Pictures (Nasdaq: SAPX) will jointly produce and develop the motion picture "Neuromancer," which is based on the best-selling science fiction novel written by William Gibson, with Prodigy Pictures.

Bank of America Merrill Lynch analysts Steve Fleishman and Ameet Thakkar upgraded Calpine (NYSE: CPN) to a Buy rating.

On the downside

Second quarter earnings slipped for Silicon Laboratories (Nasdaq: SLAB) and the company forecast third quarter revenue below analyst expectations.

Bridgepoint Education's (NYSE: BPI) largest shareholder Warburg Pincus will sell all 34.6 million shares of the online educator that the private equity firm owns.

Shares of USG (Nasdaq: USG) continued to fall after reporting a wider than expected loss for the second quarter on Friday.

In the broad market, declining issues outpaced advancers by a margin of more than 7 to 2 on the NYSE and by more than 3 to 1 on Nasdaq. The Russell 2000 which tracks small cap stocks dropped 10 points to 831.