Recession Fears Spark Sell-Off

Recessionary fears sparked a sell-off to send the markets tumbling during the midday with the Dow skidding more than 345 points to 8346. Nasdaq plunged 48 points to 1556.

On the upside

Align Technology (Nasdaq: ALGN) announced cost cutting measures including the elimination of 111 positions and the consolidation of various functions in a Costa Rica facility.

Developers Diversified Realty (NYSE: DDR) will sell thirteen properties to raise approximately $890 million. The real estate investment trust also suspended its fourth quarter dividend and lowered its 2009 payout.

MEMC Electronic Materials (NYSE: WFR) reported sharply higher third quarter earnings as higher product volume lifted revenue.

On the downside

Although VCA Antech (Nasdaq: WOOF) reported higher third quarter earnings and revenue, the results fell short of expectations.

Las Vegas Sands (NYSE: LVS) must raise more capital because the slumping economy has negatively impacted the casino business.

Rumors that Vimpel Communications (NYSE: VIP) chief executive Alexander Izosimov was resigning and that Alfa Group which owns 44% Vimpel was selling its stake in the mobile phone company sent shares of the company tumbling. Both rumors have been denied.

In the broad market, declining issues outpaced advancers by a margin of more than 6 to 1 on the NYSE and by more than 4 to 1 on Nasdaq. The Russell 2000 which tracks small cap stocks dropped 15 points to 475.