Profits May Be Hurt By New Banking Restrictions

The possibility of tighter banking restrictions sent the markets tumbling to a sharply lower close with the Dow plunging 213 points to 10,389 over concerns that the new rules will hinder profits. Nasdaq dropped 25 points to 2265.

On the upside

Plexus (Nasdaq: PLXS) reported higher first quarter earnings that surpassed analyst estimates by a wide margin.

Comerica (NYSE: CMA) reported a loss for the fourth quarter that was narrower than expected.

Third quarter earnings for Xilinx (NYSE: XLNX) beat expectations and revenue rose to a new record.

On the downside

A-Power Energy Generation Systems (Nasdaq: APWR) closed an $83 million private placement.

Shares of Bank of America (NYSE: BAC), JP Morgan Chase (NYSE: JPM) and Citigroup (NYSE: C) all fell over the possibility of increased banking regulations.

Pfizer (NYSE: PFE) will pay Auxilium (Nasdaq: AUXL) $15 million for exclusive rights to market and sell Auxilium's Xiaflex.

In the broad market, declining issues outpaced advancers by a margin of nearly 7 to 2 on the NYSE and by nearly 3 to 1 on Nasdaq. The Russell 2000 which tracks small cap stocks tumbled 11 points to 628.

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