Disappointing Corporate Profits Crush Stocks

Weak profit reports battered the stock market as the Dow lost more than 100 points to 8269 while Nasdaq dropped 28 points to 1530. Investors were also disappointed by House GOP opposition to Obama's economic stimulus package.

On the upside

Shares of Boston Scientific (NYSE: BSX) rose after the medical device maker posted modest operating income along with a one-time charge to write down its acquisition with Guidant.

Sepracor (Nasdaq: SEPR) posted higher 4th quarter earnings as the drug maker cut costs and reduced headcount to reaffirm its 2009 profit outlook.

On the downside

Shares of Starbucks (Nasdaq: SBUX) opened lower after the coffee chain posted lower profits and announced the closure of 300 stores.

Chip maker Qualcomm (Nasdaq: QCOM) reported a steep decline in profits and lowered its 2009 revenue forecast.

Shares of Dryships (Nasdaq: DRYS) ran aground after the Greek bulk carrier reported a breach of financial covenants and plans to issue $500 million in new stock.

Shares of Allstate (NYSE: ALL) tumbled after the insurer posted a sizable 4th quarter loss that were worse than expected.

In the broad market, declining issues outpaced advancers by a margin of nearly 4 to 1 on the NYSE and by more than 3 to 1 on Nasdaq. The Russell 2000 which tracks small cap stocks lost 11 points to 461.