Drop In Consumer Sentiment Sparks Recovery Concerns

A sharp drop in consumer sentiment sparked fears that the economic recovery would be stalled by wary consumers.  The Dow plunged 135 points to 9262 while Nasdaq tumbled 36 points to 1973.

On the upside

China GrenTech (Nasdaq: GRRF) reversed year ago losses to post a profit for the second quarter as revenue surged.

Private equity firm Clayton, Dubilier & Rice will invest $250 million in NCI Building Systems (NYSE: NCS).

Robert W. Baird analyst Whit Mayo upgraded Tenet Healthcare (NYSE: THC) saying that the company will surpass expectations.

On the downside

Credit Suisse downgraded Barnes & Noble (NYSE: BKS).

Moody's Investor Service cited Liz Claiborne's (NYSE: LIZ) disappointing second quarter results as well as its lowered guidance for downgrading the apparel company's credit rating.

Darling International (NYSE: DAR) reported that earnings for the second quarter plunged by more than half.

In the broad market, declining issues outpaced advancers by a margin of more than 7 to 2 on the NYSE and by nearly 5 to 1 on Nasdaq. The Russell 2000 which tracks small cap stocks tumbled 14 points to 560.