No Debt Deal, Markets Tumble

The inability of legislators to reach a debt reduction compromise weighed the markets down to a lower close with the Dow tumbling 91 points to 12,501. Nasdaq slipped 2 points to 2839.

On the upside

MGIC Investment (NYSE: MTG) chief executive officer Curt S. Culver and chief financial officer J. Michael Lauer each purchased 10,000 shares of company stock.

Tellabs (Nasdaq: TLAB) swung to a second quarter loss but the results were better than expected and the company announced plans to eliminate 330 jobs and cut $50 million in expenses.

Lexmark (NYSE: LXK) reported higher second quarter earnings that surpassed analyst expectations by a wide margin.

On the downside

STMicroelectronics (NYSE: STM) reported higher second quarter earnings but the company forecast third quarter results below expectations prompting a downgrade.

Second quarter earning rose for Waters (NYSE: WAT) but the results missed expectations.

Lennox International (NYSE: LII) disappointed with lower second quarter earnings that fell short of expectations and the company forecast full year results below estimates.

In the broad market, declining issues outpaced advancers by a margin of nearly 5 to 3 on the NYSE and by nearly 2 to 1 on Nasdaq. The Russell 2000 which tracks small cap stocks dropped 6 points to 824.