First time applications for unemployment benefits rose more than expected last week to weigh the markets down to a lower open with the Dow dropping 64 points to 12,355. Nasdaq plunged 31 points to 2805.

On the upside

Sycamore Partners will pay approximately $193.3 million in cash to take Talbots (NYSE: TLB) private, a lower price than originally offered before acquisition negotiations between the parties ended last week.

Ciena (Nasdaq: CIEN) narrowed second quarter losses more than expected as revenue rose.

Gaylord Entertainment (NYSE: GET) will sell its Gaylord hotel brand and hotel management company to Marriott International (NYSE: MAR) for $210 million in cash.

On the downside

Joy Global (NYSE: JOY) reported higher second quarter earnings and revenue but the mining equipment maker cut its earnings guidance for 2012.

Chelsea Therapeutics (Nasdaq: CHTP) will halt development of its rheumatoid arthritis treatment CH-4051 after the drug failed a mid-stage clinical trial.

Jefferies cut its price target on DryShips (NYSE: DRYS) from $3 to $2.50.

In the broad market, declining issues outpaced advancers by a margin of nearly 7 to 2 on the NYSE and by nearly 5 to 2 on Nasdaq. The Russell 2000 which tracks small cap stocks tumbled 9 points to 752.