Markets Extend Losses Over Surge In Jobless Claims

The markets extended its losses during the midday with the Dow plummeting 172 points to 10,243 as initial applications for unemployment benefits climbed to its highest level in nine months. Nasdaq plunged 40 points to 2175.

On the upside

PetSmart (Nasdaq: PETM) reported higher second quarter earnings that topped analyst estimates as revenue rose.

Second quarter earnings rose for NetEase.com (Nasdaq: NTES) as revenue climbed.

Open Text (Nasdaq: OTEX) reported sharply higher fourth quarter earnings that beat analyst expectations as revenue increased.

On the downside

Second quarter earnings rose for Staples (Nasdaq: SPLS) but revenue fell short of estimates.

Fitch Ratings warned that Wells Fargo (NYSE: WFC) will continue to write down significant loan losses.

Standpoint Research downgraded Motorola (NYSE: MOT).

In the broad market, declining issues outpaced advancers by a margin of more than 4 to 1 on the NYSE and by 5 to 1 on Nasdaq. The Russell 2000 which tracks small cap stocks plunged 16 points to 611.