Despite a drop in first time applications for unemployment benefits, the markets opened sharply lower with the Dow plummeting 169 points to 11,726 as yesterday's disappointing factory orders report renewed fears of a double dip recession. Nasdaq plunged 58 points to 2634.

On the upside

Emdeon (NYSE: EM) will be taken private by Blackstone Capital Partners in an all cash deal valued at approximately $3 billion.

Web.com Group (Nasdaq: WWWW) reported higher second quarter earnings that beat expectations and announced a $560 million cash and stock deal to acquire Network Solutions.

Second quarter earnings climbed for SolarWinds (NYSE: SWI) to surpass analyst expectations.

On the downside

Dendreon (Nasdaq: DNDN) narrowed second quarter losses but the biotechnology company withdrew its 2011 revenue outlook due to disappointing sales of its prostate cancer treatment Provenge prompting downgrades.

Entropic Communications (Nasdaq: ENTR) reported higher second quarter earnings but the results missed analyst expectations.

Walter Energy (NYSE: WLT) blamed higher expenses and bad weather for lower second quarter earnings that fell far short of expectations.

In the broad market, declining issues outpaced advancers by a margin of nearly 6 to 1 on the NYSE and by nearly 7 to 1 on Nasdaq. The Russell 2000 which tracks small cap stocks plummeted 17 points to 754.