Bernanke Wants Safer Way To Shutter Failing Firms, Markets Drop

The markets traded lower during the midday with the Dow losing 29 points to 7372 after Federal Reserve chairman Ben Bernanke said that the country must create a safer process to shutter failing nonbank financial firms without impacting the entire economy. Nasdaq dropped 15 points to 1468.

On the upside

Citi analyst Kate McShane said that OfficeMax (NYSE: OMX) can increase its market share as rival Office Depot (NYSE: OPD) closes 112 stores.

Kinross Gold (NYSE: KGC) will pay $150 million to take a nearly 20% stake in Harry Winston Diamond (NYSE: HWD) and a minority stake in the diamond company's Diavik diamond mind.

UBS upgraded Johnson & Johnson (NYSE: JNJ) after a Food and Drug Administration advisory panel recommended approval for the company's anticlotting drug rivaroxaban.

On the downside

Sony (NYSE: SNE) and LM Ericsson (Nasdaq: ERIC) warned that their joint venture Sony Ericsson will report a first quarter loss due to weak demand.

Wachovia downgraded Eagle Bulk Shipping (Nasdaq: EGLE).

An analyst warned that Hovnanian Enterprises (NYSE: HOV) will use its cash and may not be able to repay $100 million in bonds.

In the broad market, declining issues outpaced advancers by a margin of nearly 2 to 1 on the NYSE and by more than 5 to 3 on Nasdaq. The Russell 2000 which tracks small cap stocks tumbled 6 points to 407.