Economic Recovery Threatened By Spending Cuts, Markets Fall

The markets turned negative during the midday with the Dow slipping 11 points to 12,480 after Federal Reserve Chairman Ben Bernanke warned that excessively sharp government spending cuts will hurt the nation's fragile economy. Nasdaq fell 25 points to 2770.

On the upside

Consol Energy (NYSE: CNX) increased its coal production guidance for 2011.

Rumors persisted that Pfizer (NYSE: PFE) may acquire Icagen (Nasdaq: ICGN).

Capstone Turbine (Nasdaq: CPST) received an $8.6 million multi-year comprehensive fleet-wide service blanket order with Petroleos Mexicanos.

On the downside

Coffee Holding (Nasdaq: JVA) president and chief executive Andrew Gordon sold 140,000 shares of company stock while vice president David Gordon also sold 140,000 shares.

Raymond James downgraded Clean Energy Fuels (Nasdaq: CLNE) from Strong Buy to Outperform.

Goldman Sachs downgraded RTI International Metals (NYSE: RTI) to a Sell rating and lowered its price target to $31 from $40 per share saying that margins will be pressured over the next few years.

In the broad market, declining issues outpaced advancers by a margin of more than 7 to 2 on the NYSE and by nearly 4 to 1 on Nasdaq. The Russell 2000 which tracks small cap stocks tumbled 14 points to 822.