The Dow Jones Industrials sagged 72 points to 13,913; the S&P500 lost 10 points to 1,539, and the NASDAQ ended 16 points lower to 2,764.
In company news, shares in Robbins & Myers jumped 18.09% to $72.14 after the maker of machinery for the pharmaceutical and industrial markets reported a quarterly profit that nearly doubled and beat analysts' estimate by a wide margin. The gains were mainly due to higher sales and an improved cost structure.
Shares of telecommunications equipment maker Ericsson had their biggest intraday fall on record, tanking 23.45% to $31.33. The firm posted a surprise drop in third-quarter profits on the back of weak sales of network upgrades. Brokers downgraded the stock in droves saying it would be tough to recover margins in the short term.
Grocer Supervalu Incorporated also posted a higher quarterly profit as reduced employee-related costs helped offset slowing sales sending its shares 5.48% higher to $37.17. The company also stood by its full-year earnings forecast, but said sales at outlets open more than a year, excluding acquisitions and replacement stores would be at the low end of its 1 percent to 2 percent growth forecast.
And finally, the largest U.S. home builder D.R. Horton slid 5.3% to $12.86 after admitting net orders for new homes plunged 39 percent amid a spike in cancellations. Federal Reserve Chairman Ben Bernanke and Treasury Secretary Henry Paulson added their voices to those warning that the housing slump will likely hurt the U.S. economy for some time.
To the best and worst performers in the Nasdaq Top 100. Topping the list was Echostar Communications advancing 4.16% to $51.08. UAL Corporation and Verisign also added value.
Ericsson lost a quarter of its market value in a spectacular 23.45% plunge to $31.33. Infosys Technologies and Akamai Technologies also landed weaker.
