Closing Bell Report

A surge in jobless claims along with slower than expected growth of the economy sent the markets tumbling to a sharply lower close with the Dow skidding 206 points to 11,378.  Nasdaq lost 4 points to 2326.

On the upside

Marathon Oil (NYSE: MRO) reported a drop in second quarter earnings as margins fell and announced that the company may split into two separate companies.

Geriatric pharmaceuticals company Omnicare (NYSE: OCR) reported lower second quarter earnings that beat expectations.

Third quarter earnings rose for Tetra Tech (Nasdaq: TTEK) to exceed expectations as government contracts inceased.

On the downside

Harris Stratex Networks (Nasdaq: HSTX) warned that full year results will fall short of expectations and said it may have to restate earnings from 2005 to the present due to accounting errors.

Owens-Illinois (NYSE: OI) reported higher second quarter earnings that surpassed estimates as higher product prices offset increased expenses but the stock price tumbled.

Check printer Deluxe (NYSE: DX) reported lower second quarter earnings and warned that third quarter results as well as full year earnings will fall short of estimates.

In the broad market, declining issues outpaced advancers by a margin of more than 3 to 2 on the NYSE, and by more than 10 to 9 on Nasdaq.  The Russell 2000 which tracks small cap stocks fell 4 points to 715.