Nation's Credit Rating May Be Downgraded, Markets Close Lower

The credit rating of the United States may be downgraded despite making debt interest payments if certain other financial obligations are missed. The markets closed lower with the Dow losing 54 points to 12,437. Nasdaq tumbled 34 points to 2762.

On the upside

Bank of America (NYSE: BAC) reportedly offered to settle one of several lawsuits filed by MBIA (NYSE: MBI) against the banking giant.

Chevron Australia awarded a $2.3 billion contract to Chicago Bridge & Iron (Nasdaq: CBI) to provide mechanical, electrical and instrumentation work on the Gorgon Project in Australia.

Second quarter earnings fell for Universal Forest Products (Nasdaq: UFPI) but the results topped analyst estimates .

On the downside

Level 3 Communications' (Nasdaq: LVLT) subsidiary Level 3 Escrow will increase its senior notes offering by an additional $300 million.

Gleacher & Co. analyst Stephen Patel lowered his 2011 and 2012 earnings estimates for Nokia (NYSE: NOK) saying that shipments will drop.

Oppenheimer lifted its earnings estimates for Capital One (NYSE: COF) through 2012 but the stock price dropped.

In the broad market, declining issues outpaced advancers by a margin of nearly 7 to 2 on both the NYSE and on Nasdaq. The Russell 2000 which tracks small cap stocks tumbled 13 points to 823.