Mid-Day Report

Surging wholesale prices dampened investor enthusiasm to send the markets tumbling during the midday with the Dow plummeting 120 points to 11,359.  Nasdaq plunged 28 points to 2389.

On the upside

Hydrogenics' (Nasdaq: HYGS) fuel cells will power an extended back up system for APC data centers.

Federated Investors (NYSE: FII) announced a special cash dividend of $2.76 per share payable on September 15 to shareholders of record September 9 and will repurchase up to 5 million shares of common stock.

Xinhua Finance Media (Nasdaq: XFML) reported second quarter earnings that beat expectations as revenue rose sharply prompting the media company to boost its full year guidance.

On the downside

Shares of First Marblehead (NYSE: FMD) plunged as investors locked in profits.  Yesterday, the student lender announced that Goldman Sachs unit GS Capital Partners completed its investment of $132.7 million in the company.

Rumors that Lehman Brothers (NYSE: LEH) will sell its investment management unit sent shares of the financial services company tumbling.

Luxury retailer Saks (NYSE: SKS) disappointed by widening second quarter losses as sales dropped.

In the broad market, declining issues outpaced advancers by a margin of nearly 3 to 1 on the NYSE and by nearly 5 to 2 on Nasdaq.  The Russell 2000 which tracks small cap stocks plunged 11 points to 731.