Rising Unemployment Weighs Down Markets

Rising unemployment along with continued concerns about European debt weighed down the markets during the midday with the Dow falling 70 points to 10,449. Nasdaq tumbled 32 points to 2287.

On the upside

CGI Group will pay approximately $903 million in cash to acquire Stanley (NYSE: SXE).

Newcastle Investment (NYSE: NCT) swung to a first quarter profit.

Borders Group (NYSE: BGP) announced that pre-orders are now being accepted for its Kobo eReader with the eBook store and apps launching next month.

On the downside

Although DragonWave (Nasdaq: DRWI) reversed year ago losses to post a profit for the fourth quarter, earnings fell short of expectations.

Leap Wireless International (Nasdaq: LEAP) blamed higher expenses for widening first quarter losses more than expected.

Harmonic (Nasdaq: HLIT) swung to a first quarter profit but revenue fell short of expectations.

In the broad market, declining issues outpaced advancers by a margin of more than 5 to 3 on the NYSE and by more than 2 to 1 on Nasdaq. The Russell 2000 which tracks small cap stocks dropped 10 points to 662.