Closing Bell Report

A disappointing producer price report sent the markets tumbling to a sharply lower close with the Dow skidding 131 points to 11,349.  Nasdaq plummeted 33 points to 2384.

On the upside

Shares of coal producer Peabody Energy (NYSE: BTU) surged as crude oil prices rebounded.

Massey Energy (NYSE: MEE) priced its offering of senior notes and declared a quarterly dividend of 5 cents per share payable on October 14 to shareholders of record September 30.

Sirius XM Radio (Nasdaq: SIRI) announced that radio sports personality Chris "Mad Dog" Russo will anchor a program as part of a new sports talk channel.

On the downside

China TechFaith Wireless Communication Technology (Nasdaq: CNTF) blamed the weak economy for warning that sales have dropped and announced a restructuring of its management team along with the elimination of nearly half its staff.

Building Materials Holding (NYSE: BLG) blamed the slumping housing market for swinging to a second quarter loss as revenue plunged.

Citigroup (NYSE: C) announced a five year deal with Accion Texas to purchase up to $30 million in small enterprise loans.

In the broad market, declining issues outpaced advancers by a margin of more than 5 to 2 on both the NYSE and on Nasdaq.  The Russell 2000 which tracks small cap stocks plunged 12 points to 730.