Possible Default And Downgrade Send Markets Tumbling

The looming debt default and threat of a credit downgrade weighed the markets down to a sharply lower open with the Dow plunging 114 points to 12,387. Nasdaq plummeted 53 points to 2786.

On the upside

Las Vegas Sands (NYSE: LVS) reversed year ago losses to post a better than expected profit for the second quarter as revenue surged.

Second quarter earnings plunged for The Jones Group (NYSE: JNY) but the results surpassed analyst expectations by a wide margin.

Tempur-Pedic (NYSE: TPX) reported sharply higher second quarter earnings that beat analyst expectations as revenue climbed.

On the downside

Juniper Networks (NYSE: JNPR) disappointed with lower second quarter earnings that fell short of analyst expectations and the company forecast current quarter results below estimates prompting downgrades.

Corning (NYSE: GLW) blamed a supply disruption caused by the March earthquake and tsunami in Japan for lower second quarter earnings and the company cut its glass production guidance for 2011.

Illumina (Nasdaq: ILMN) reported higher second quarter earnings that topped analyst estimates but the genetic analysis instrument maker forecast full year results below expectations.

In the broad market, declining issues outpaced advancers by a margin of more than 4 to 1 on both the NYSE and on Nasdaq. The Russell 2000 which tracks small cap stocks tumbled 12 points to 812.