Possible BP Bankruptcy Weighs Down Markets

Fears that BP will file for bankruptcy protection weighed down the markets in late afternoon trading to close lower with the Dow falling 40 points to 9899. Nasdaq lost 11 points to 2158.

On the upside

Shares of offshore driller Cal Dive International (NYSE: DVR) rose as the government indicated that the six month moratorium on deep water drilling is unlikely to be extended.

KBR (NYSE: KBR) will repurchase up to 10 million shares of its common stock.

General Maritime (NYSE: GMR) will pay $620 million to purchase seven double-hull tankers.

On the downside

The Justice Department launched an investigation into IPC The Hospitalist's (Nasdaq: IPCM) Medicare and Medicaid claims going back seven years.

Andarko Petroleum's (NYSE: APC) debt protection costs leaped to a record high of 575 basis points.

NCI Building (NYSE: NCS) disappointed with a wider than expected loss for the second quarter as revenue dropped.

In the broad market, advancing issues outpaced decliners by a margin of nearly 10 to 9 on the NYSE while decliners edged out advancers by 10 to 9 on Nasdaq. The Russell 2000 which tracks small cap stocks edged up a fraction to 618.