Fear Of Spreading Debt Crisis Sinks Stocks

The markets extended its losses during the midday with the Dow plummeting 158 points to 12,321 as investors feared that the growing debt crises in Europe would spread. Nasdaq sank 40 points to 2749.

On the upside

Audley Capital Advisors, which owns a 1.5% stake in Walter Energy (NYSE: WLT), advised the coal company to explore selling itself.

Rising silver prices lifted shares of First Majestic Silver (NYSE: AG) and Silvercorp Metals (NYSE: SVM).

The Bedford Report issued a report saying that two of Coffee Holding's (Nasdaq: JAVA) ethnic coffees are poised to go main stream.

On the downside

Stifel Nicolaus downgraded Entropic Communications (Nasdaq: ENTR) to a Sell rating.

Shares of Radian (NYSE: RDN) tumbled after rival mortgage insurer MGIC Investment (NYSE: MTG) reported a loss for the second quarter.

SkyWest (Nasdaq: SKYW) warned that second quarter earnings will fall far short of analyst expectations due to higher expenses.

In the broad market, declining issues outpaced advancers by a margin of nearly 9 to 1 on the NYSE and by nearly 5 to 1 on Nasdaq. The Russell 2000 which tracks small cap stocks plunged 14 points to 813.