Despite falling oil prices, the markets retreated during the midday over concerns that Lehman Brothers may not be able to raise capital. The Dow plunged 103 points to 11,408 while Nasdaq plummeted 26 points to 2244.
On the upside
Finisar (Nasdaq: FNSR) reversed year ago losses to report a profit for the first quarter that surpassed analyst expectations.
Recruiter Korn/Ferry International (NYSE: KFY) reported lower first quarter earnings despite higher revenue as expenses rose. The results topped expectations.
Signature Bank (Nasdaq: SBNY) will raise capital through the sale of 4.7 million shares of common stock priced at $29 per share.
On the downside
Citi Investment Research analyst Michael Rollins downgraded Tw Telecom (Nasdaq: TWTC) after the voice and data services provider warned that the weak economy is pressuring its revenue.
Although a tax benefit lifted second quarter earnings for The Pep Boys - Manny, Moe & Jack (NYSE: PBY), revenue dropped to fall short of expectations.
Concerns about hurricane damage weighed down shares of insurer American International Group (NYSE: AIG).
In the broad market, declining issues outpaced advancers by a margin of more than 3 to 1 on the NYSE and by more than 5 to 3 on Nasdaq. The Russell 2000 which tracks small cap stocks tumbled 8 points to 725.
