Corporate Losses Weigh Down Markets

Disappointing corporate losses weighed down the markets to a lower close with the Dow tumbling 100 points to 8824. Nasdaq dropped 11 points to 1579.

On the upside

Macy's (NYSE: M) amended its $2 billion credit agreement making it more flexible.

Deutsche Bank lowered its price target for FelCor Lodging Trust (NYSE: FCH) to $3.50. The real estate investment trust rose to close at $2.29.

Although the deal to take Huntsman (NYSE: HUN) private collapsed, Standard & Poor's is maintaining its ratings on the chemical maker.

On the downside

Constellation Energy (Nasdaq: CEG) rebuffed Warren Buffet's offer to purchase the company for $4.7 billion choosing instead to sell half of its nuclear energy business to Electricite de France SA.

Hovnanian Enterprises (NYSE: HOV) chief executive Ara Hovnanian expects the housing market to continue to be challenging in 2009 and called upon the government to enact a stimulus package to shore up home prices.

Deutsche Bank (NYSE: DB) announced that it will not be able to repay a $1.4 billion bond in January as originally anticipated.

In the broad market, advancing issues outpaced decliners by a margin of nearly 3 to 2 on the NYSE and by nearly 10 to 9 on Nasdaq. The Russell 2000 which tracks small cap stocks added 4 points to 487.