Markets Tumble Over Credit Rating Concerns

Concerns that the nation will lose its top AAA credit rating sent the markets tumbling to a sharply lower open with the Dow plunging 138 points to 12,340. Nasdaq plummeted 32 points to 2757.

On the upside

Bloomberg News reported that Liz Claiborne (NYSE: LIZ) was exploring the sale of its Mexx brand to private equity firms Leonard Green & Partners, Sun Capital and Golden Gate Capital.

The Wall Street Journal reported that Pharmaceutical Product Development (Nasdaq: PPDI) was exploring the possible sale of the company.

Sino Clean Energy (Nasdaq: SCEI) entered a preliminary agreement to acquire Crown Energy which owns a 60% stake in Foshan Nan Hai CWSF.

On the downside

WebMD Health (Nasdaq: WBMD) blamed a drop in advertising revenue for lowering its 2011 guidance.

Nabi Pharmaceuticals (Nasdaq: NABI) reported that its NicVAX smoking cessation treatment failed a Phase III clinical trial.

MGIC Investment (NYSE: MTG) swung to a second quarter loss as mortgage defaults climbed.

In the broad market, declining issues outpaced advancers by a margin of more than 5 to 1 on the NYSE and by nearly 5 to 1 on Nasdaq. The Russell 2000 which tracks small cap stocks tumbled 12 points to 816.