Unexpectedly High Unemployment Rate Weighs Down Markets

A larger than expected jump in the nation's unemployment rate weighed down investor sentiment during the midday with the Dow losing 51 points to 6544. Nasdaq fell 18 points to 1282.

On the upside

Dow Chemical (NYSE: DOW) and Rohm & Haas (NYSE: ROH) have engaged each other in direct discussions to settle differences over their proposed merger.

Solutia (NYSE: SOA) affirmed its full year 2009 outlook.

Western Refining (NYSE: WNR) narrowed fourth quarter losses prompting an analyst upgrade.

On the downside

AnnTaylor Stores (NYSE: ANN) reported a wider than expected loss for the fourth quarter and announced additional store closures.

Shares of General Motors (NYSE: GM) plunged to its lowest level in more than 75 years over concerns that the troubled automaker may file for bankruptcy despite billions in government assistance.

Insulet (Nasdaq: PODD) blamed a restructuring charge for nearly doubling its fourth quarter loss.

In the broad market, declining issues outpaced advancers by a margin of nearly 7 to 3 on the NYSE and by more than 9 to 7 on Nasdaq. The Russell 2000 which tracks small cap stocks fell 3 points to 347.