Despite a larger than expected gain in factory orders and retreating oil prices, the markets tumbled during the midday with the Dow dropping 88 points to 11,429. Nasdaq plunged 24 points to 2325.
On the upside
Citi Investment Research analyst Chip Dillon said that price increases for containerboard could nearly triple earnings for Smurfit-Stone Container (Nasdaq: SSCC).
Temple-Inland (NYSE: TIN) reassured investors that none of its facilities were damaged by Hurricane Gustav.
Goldman Sachs analyst Christopher Cuomo said that Continental Airlines (NYSE: CAL) experienced an encouraging increase in traffic in August.
On the downside
Credit Suisse downgraded Forest Labs (NYSE: FRX) after the company reported disappointing late stage clinical trial results for the lung drug aclidinium bromide which it is developing with Spanish pharmaceutical Almirall.
Although MEMC Electronic Materials (NYSE: WFR) affirmed its third quarter guidance, the silicon wafer company warned of increasingly soft demand.
In the broad market, declining issues outpaced advancers by a margin of nearly 5 to 3 on the NYSE and by 10 to 9 on Nasdaq. The Russell 2000 which tracks small cap stocks lost a point to 737.
