Opening Bell Report

The markets opened lower with the Dow falling 60 points to 11,555 while Nasdaq lost 11 points to 2337. Investors were rattled by a larger than expected loss at Freddie Mac which weighed down the financial services sector.

On the upside

Cisco Systems (Nasdaq: CSCO) posted slightly higher earnings as the network equipment maker warned of slowing demand among telecom carriers.

Fidelity National Information Services (NYSE: FIS) reported higher revenues and lower earnings due to one-time charges related to its spin-off of Lender Processing Services (NYSE: LPS).

Shares of Ultra Petroleum (NYSE: UPL) leaped after the natural gas exploration companies posted record earnings that doubled versus year-ago levels.

On the downside

Freddie Mac (NYSE: FRE) posted a 2nd quarter loss that was three times greater than expected by analysts as the mortgage lender warned that its losses may continue to mount due to falling home prices. Shares of Fannie Mae (NYSE: FNM) also dropped.

Time Warner (NYSE: TWX) reported lower 2nd quarter earnings and announced plans to split its AOL online operations and sell them as parts.

Shares of Lamar Advertising (Nasdaq: LAMR) fell after the outdoor advertising firm reported lower earnings and higher operating costs.

In the broad market, declining issues outpaced advancers by a margin of nearly 2 to 1 on both the NYSE and Nasdaq. The Russell 2000 which tracks small cap stocks lost 5 points to 715.