First time applications for unemployment benefits rose more than expected last week to weigh the markets down to a lower open with the Dow dropping 64 points to 12,355. Nasdaq plunged 31 points to 2805.
On the upside
Sycamore Partners will pay approximately $193.3 million in cash to take Talbots (NYSE: TLB) private, a lower price than originally offered before acquisition negotiations between the parties ended last week.
Ciena (Nasdaq: CIEN) narrowed second quarter losses more than expected as revenue rose.
On the downside
Joy Global (NYSE: JOY) reported higher second quarter earnings and revenue but the mining equipment maker cut its earnings guidance for 2012.
Chelsea Therapeutics (Nasdaq: CHTP) will halt development of its rheumatoid arthritis treatment CH-4051 after the drug failed a mid-stage clinical trial.
Jefferies cut its price target on DryShips (NYSE: DRYS) from $3 to $2.50.
In the broad market, declining issues outpaced advancers by a margin of nearly 7 to 2 on the NYSE and by nearly 5 to 2 on Nasdaq. The Russell 2000 which tracks small cap stocks tumbled 9 points to 752.