Profit Taking Sinks Stocks

The markets extended its losses to close lower with the Dow plunging 116 points to 7660 as investors locked in profits from yesterday's rally. Nasdaq plummeted 38 points to 1517.

On the upside

Patriot Coal (NYSE: PCX) settled a lawsuit filed by two environmental groups by agreeing to try a different method of reducing selenium runoff.

Wedbush Morgan initiated coverage of Emergent BioSolutions (NYSE: EBS) with a Buy rating.

Seagate (Nasdaq: STX) introduced its BlackArmor portfolio of storage solutions designed for small businesses.

On the downside

Supertel Hospitality (Nasdaq: SPPR) suspended the quarterly dividend for the real estate investment trust's common shares.

Origin Agritech (NYSE: SEED) swung to a loss for the year as interest expenses surged.

Real estate investment trust ProLogis (Nasdaq: PLD) will pay down debt with over $1.3 billion it has received from the sale of assets.

In the broad market, declining issues outpaced advancers by a margin of more than 2 to 1 on the NYSE and by nearly 5 to 2 on Nasdaq. The Russell 2000 which tracks small cap stocks plunged 17 points to 417.