Default Concerns Sink Stocks

Concerns that more European countries may default sent the markets tumbling to a sharply lower close with the Dow plummeting 151 points to 12,505. Nasdaq sank 57 points to 2802.

On the upside

Shares of stem cell research firm Pluristem Therapeutics (Nasdaq: PSTI) continued rising after Swedish doctors last week implanted a trachea grown from a cancer patient's own stem cells.

Boston Scientific (NYSE: BSX) will expand its manufacturing plant in Costa Rica and hire 250 workers.

A Seeking Alpha article defended China Sky One Medical (Nasdaq: CSKI) against allegations of fraud.

On the downside

PMI (NYSE: PMI) introduced its RH Reward program offering incentives to select homeowners with underwater mortgages to remain current on their mortgages.

Level 3 Communications (Nasdaq: LVLT) launched a new ultra-low-latency fiber optic route between London and Frankfurt that will increase trading speeds for banks, hedge funds, brokers and other financial services institutions but the stock price fell.

Striking mine workers in Indonesia will return to work after reaching an agreement with Freeport-McMoRan (NYSE: FCX) to begin negotiations on a collective labor agreement.

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 plummeted 19 points to 833.