The markets opened lower as investors digested the latest batch of corporate earnings news. The Dow lost 10 points to 11,458 while Nasdaq gave up 8 points to 2271.

On the upside

Shares of Foundry Networks (Nasdaq: FDRY) soared after Brocade Communications (Nasdaq: BRCD) offered $3 billion to buy the network equipment maker.

PepsiAmericas (NYSE: PAS) posted higher 2nd quarter profits and raised its full-year guidance.

Lower oil prices boosted the airline sector. Shares of AMR (NYSE: AMR), UAL (Nasdaq: UAUA) and Southwest Airlines (NYSE: LUV) surged.

On the downside

Wachovia (NYSE: WB) took a $8.8 billion loss due to charges and reserves for bad mortgage loans and slashed its dividend.

Shares of American Express (NYSE: AXP) fell sharply after the credit card company reported disappointing results.

Texas Instruments (NYSE: TXN) posted lower earnings due to weak sales of cell phone chips.

In the broad market, declining issues outpaced advancers by a margin of 5 to 4 on the NYSE and by a slim margin on Nasdaq. The Russell 2000 which tracks small cap stocks lost 3 points to 694.