Markets Skid As Gridlock Continues

The markets skidded to close sharply lower with the Dow collapsing 198 points to 12,302 as Congress failed to produce a deficit reduction plan. Nasdaq sank 75 points to 2764.

On the upside

Marshall Edwards (Nasdaq: MSHL) reported encouraging data from a pre-clinical study of its ovarian cancer treatment NV-128.

Shares of communications lifecycle management software firm Tangoe (Nasdaq: TNGO) climbed in its market debut.

IAC/InterActiveCorp (Nasdaq: IACI) reported sharply higher second quarter earnings that more than tripled to beat analyst expectations by a wide margin.

On the downside

Flagstar Bancorp (NYSE: FBC) reported a loss for the second quarter and sold 27 of its bank branches in Atlanta to PNC Financial Services (NYSE: PNC).

Alere (NYSE: ALR) narrowed second quarter losses but the results fell short of analyst expectations and the medical diagnostics products company forecast full year results below estimates.

Trinity Industries (NYSE: TRN) blamed higher expenses for second quarter earnings that missed analyst expectations.

In the broad market, declining issues outpaced advancers by a margin of nearly 8 to 1 on the NYSE and by nearly 7 to 1 on Nasdaq. The Russell 2000 which tracks small cap stocks plummeted 24 points to 800.