Disappointing earnings and corporate forecasts weighed down the markets during the midday with the Dow lost 38 points to 8542. Nasdaq plunged 33 points to 1532.
On the upside
Private equity firm Elevation Partners will invest $100 million in Palm (Nasdaq: PALM) in exchange for Series C preferred stock that is convertible to common stock as well as warrants to purchase 7 million shares of common stock.
JPMorgan (NYSE: JPM) will expand its Canadian client franchise and risk management through the purchase of UBS Commodities Canada Ltd., an energy and global agricultural business.
AT&T (NYSE: T) introduced its U-verse Voice digital voice service in Toledo, Ohio.
On the downside
Mortgage defaults continue rising in all loan categories including loans that have been modified sending shares of Wells Fargo (NYSE: WFC) and Wachovia (NYSE: WB) lower.
Manpower (NYSE: MAN) blamed the slumping economy for withdrawing its forecast.
In the broad market, declining issues outpaced advancers by a margin of nearly 5 to 2 on both the NYSE and on Nasdaq. The Russell 2000 which tracks small cap stocks plummeted 15 points to 471.
