No Deficit Reduction Agreement, Markets Collapse

The failure of the congressional debt committee to reach a deficit reduction agreement sent the markets into a nosedive with the Dow collapsing 300 points to 11,495. Nasdaq sank 59 points to 2512.

On the upside

Global Education and Technology Group (Nasdaq: GEDU) will be acquired by Pearson for approximately $155 million in cash.

Gilead's (Nasdaq: GILD) $11 billion acquisition of Pharmasset (Nasdaq: VRUS) lifted shares of rival hepatitis C treatment maker Inhibitex (Nasdaq: INHX).

The Food and Drug Administration approved Regeneron's (Nasdaq: REGN) Eylea on Friday to treat elderly patients with blindness.

On the downside

Focus Media (Nasdaq: FMCN) reported third quarter earnings ahead of estimates on Friday and forecast current quarter results above analyst expectations but the stock price plummeted.

Shares of Eastman Kodak (NYSE: EK) continued to fall after the Wall Street Journal reported on Thursday that the company was seeking potential buyers for its online photo sharing site Kodak Gallery.

Youku.com (NYSE: YOKU) stock continued falling after widening third quarter losses more than expected last week.

In the broad market, declining issues outpaced advancers by a margin of 8 to 1 on the NYSE and by more than 5 to 1 on Nasdaq. The Russell 2000 which tracks small cap stocks plummeted 17 points to 701.