Despite falling crude oil prices, the markets traded lower during the midday over fears that Fannie Mae and Freddie Mac will require a government bailout. The Dow lost 13 points to 11,335 while Nasdaq dropped 9 points to 2376.
On the upside
VeriFone (NYSE: PAY) forecast third and fourth quarter earnings ahead of expectations and named Clinton Knowles as interim chief financial officer.
FirstFed Financial (NYSE: FED) lowered its exposure to adjustable rate loans and mortgage backed securities.
Ash Grove Cement purchased 2.2 million shares of Eagle Materials (NYSE: EXP) to acquire a 5% stake in the gypsum wallboard and cement company.
On the downside
Novatel (Nasdaq: NVTL) warned that second quarter results will fall short of estimates and forecast disappointing third quarter results prompting downgrades.
Shares of mortgage insurers Radian Group (NYSE: RDN) and PMI Group (NYSE: PMI) tumbled over investor fears that both Fannie Mae (NYSE: FNM) and Freddie Mac (NYSE: FRE) will require a government bailout.
In the broad market, declining issues outpaced advancers by a margin of nearly 10 to 9 on both the NYSE and on Nasdaq. The Russell 2000 which tracks small cap stocks added a fraction to 730.
