Corporate Losses Weigh Down Markets

Disappointing earnings overshadowed a smaller than expected contraction of the services sector to send the markets tumbling to a lower close with the Dow dropping 122 points to 7957. Nasdaq eased a point to 1515.

On the upside

Rising shipping rates lifted shares of drybulk shippers Excel Maritime Carriers (NYSE: EXM), Diana Shipping (NYSE: DSX), and Eagle Bulk Shipping (Nasdaq: EGLE).

Although fourth quarter earnings for Jones Lang Lasalle (NYSE: JLL) tumbled, revenue topped estimates.

Nalco Holding (NYSE: NLC) swung to a fourth quarter loss due to a goodwill impairment charge and a restructuring charge but the results surpassed expectations.

On the downside

Huntington Bancshares (Nasdaq: HBAN) will eliminate 500 positions, end its 401(k) matching program and issue no bonuses for 2008 in order to save $100 million.

First quarter earnings for Gladstone Capital (Nasdaq: GLAD) tumbled to fall short of expectations and the investment firm warned that it may default on its debt covenants.

Mueller Water Products (NYSE: MWA) swung to a first quarter loss due to falling sales and a significant goodwill impairment charge.

In the broad market, declining issues outpaced advancers by a margin of nearly 5 to 4 on the NYSE and by more than 7 to 5 Nasdaq. The Russell 2000 which tracks small cap stocks fell 4 points to 448.