Investors disappointed with Federal Reserve Chairman Ben Bernanke's suggestion that recent interest rate cuts are enough to stimulate the economy sent the markets tumbling during the midday with the Dow plunging 124 points to 12,379. Nasdaq plummeted 25 points to 2466.
On the upside
Smith International (NYSE: SII) will purchase W-H Energy Services (Nasdaq: WHQ) in a cash and stock deal valued at approximately $3.2 billion.Second quarter earnings for NCI Building Systems (NYSE: NCS) more than doubled to surpass expectations as demand increased.
Agria (NYSE: GRO) will release cash and stock that has been placed in escrow to be used as incentives for management at Primalights III Agricultural Development, an affiliated entity of Agria.
On the downside
New Frontier Media (Nasdaq: NOOF) blamed disappointing video-on-demand revenue for fourth quarter earnings that fell short of estimates. The adult entertainment company also suspended its dividend.Layne Christensen (Nasdaq: LAYN) reported higher first quarter earnings due to record revenue but results of its water infrastructure segment disappointed.
In response to an injuction issued by a federal court, Tyson (NYSE: TSN) will voluntarily halt the use of the phrase "raised without antibiotics" in its poultry products.
In the broad market, advancing issues outpaced decliners by a margin of nearly 2 to 1 on the NYSE and by 4 to 3 on Nasdaq. The Russell 2000 which tracks small cap stocks added 4 points to 745.
