Unemployment Claims Fall Less Than Expected, Markets Tumble

First time applications for unemployment benefits fell less that expected sending the markets tumbling during the midday with the Dow plummeting 232 points to 10,635. Nasdaq plunged 58 points to 2343.

On the upside

Although Clearwire (Nasdaq: CLWR) widened first quarter losses, the results were better than expected and revenue surged to top estimates.

The Wall Street Journal reported that Blackstone Group (NYSE: BX) entered discussions to acquire Fidelity National Information Services (NYSE: FIS).

Magna International (NYSE: MGA) reversed year ago losses to post a better than expected profit for the first quarter.

On the downside

Although first quarter earnings for Tekelec (Nasdaq: TKLC) rose to top estimates, the company warned that full year results will fall short due to acquisition costs.

Pilgrim's Pride (NYSE: PPC) narrowed first quarter losses but revenue fell.

First quarter earnings for Hill International (NYSE: HIL) tumbled.

In the broad market, declining issues outpaced advancers by a margin of nearly 7 to 1 on the NYSE and by more than 7 to 2 on Nasdaq. The Russell 2000 which tracks small cap stocks plunged 17 points to 680.