Markets Plunge As Earnings Disappoint

Disappointing earnings along with falling consumer sentiment sent the markets into a tailspin with the Dow collapsing 261 points to close at 10,097. Nasdaq plummeted 70 points to 2179.

On the upside

VocalTec (Nasdaq: VOCL) announced a 1-for-5 reverse stock split.

Wall Street Equity Research issued an upbeat report on Tellabs (NYSE: TLAB) citing improving market conditions.

Shareholders of SandRidge Energy (NYSE: SD) and Arena Resources (NYSE: ARD) approved the proposed merger between the two companies.

On the downside

Second quarter earnings plunged for Citigroup (NYSE: C) as revenue dropped in its investment banking unit.

Although Bank of America (NYSE: BAC) reported higher second quarter earnings that topped analyst expectations, revenue fell sparking concerns about future profitability.

Second quarter earnings for General Electric (NYSE: GE) rose to beat expectations but revenue dropped.

In the broad market, declining issues outpaced advancers by a margin of 7 to 2 on the NYSE and by more than 7 to 1 on Nasdaq. The Russell 2000 which tracks small cap stocks plunged 24 points to 610.