Volatile Day Ends Sharply Lower

Another volatile day of trading ended sharply lower with the Dow plummeting 203 points to 8176 over concerns of a lengthy and protracted global recession. Nasdaq plunged 46 points to 1506.

On the upside

Although DineEquity (NYSE: DIN) widened third quarter losses, the results were better than expected and the restaurant operator announced plans to sell 66 Applebee's locations.

Vimpel Communications (NYSE: VIP) paid approximately $226 million to acquire a 49.9% stake in mobile handset retailer Morefront Holdings.

The Treasurey Department will invest $866 million in First Horizon National (NYSE: FHN) as part of the government's capital purchase program.

On the downside

Goldman Sachs downgraded Horizon Lines (NYSE: HRZ) saying that the slowing economy is weighing down the tourism industry.

Shares of American International Group (NYSE: AIG) continued to fall after it was revealed that the company borrowed a total of $90.3 billion from the government and will most likely borrow more.

Incyte (Nasdaq: INCY) announced positive results from a midstage clinical trial of its rheumatoid arthritis treatment INCB18424. Rigel Therapeutics (Nasdaq: RIGL) has a competing rheumatoid arthritis treatment going through midstage clinical trials.

In the broad market, declining issues outpaced advancers by a margin of 7 to 2 on both the NYSE and on Nasdaq. The Russell 2000 which tracks small cap stocks slumped 23 points to 448.