Downgrades to the credit rating of Italy and Spain weighed the markets down to a lower close with the Dow falling 20 points to 11,103. Nasdaq tumbled 27 points to 2479.

On the upside

The Paragon Report issued a research report on Magnum Hunter (NYSE: MHR). 

Bargain hunters lifted shares of McDermott International (NYSE: MDR). 

Solutia will pay approximately $113 million to acquire Southwall Technologies (Nasdaq: SWTX).

On the downside

Investors locked in profits on Trina Solar (NYSE: TSL) whose shares rose yesterday after President Obama voiced support for continuing loan guarantees to clean energy firms.  

Profit takers weighed down shares of Patriot Coal (NYSE: PCX).

Shares of PerkinElmer (NYSE: PKI) fell after rival genetic analysis instrument maker Illumina (Nasdaq: ILMN) forecast disappointing third quarter revenue and withdrew its full year outlook. 

In the broad market, declining issues outpaced advancers by a margin of nearly 7 to 3 on the NYSE and by more than 3 to 1 on Nasdaq. The Russell 2000 which tracks small cap stocks plummeted 17 points to 656.