The markets extended its losses during the midday even as the Federal Reserve introduced its Money Market Investor Fund to provide up to $540 billion to back money market mutual funds. The Dow plummeted 229 points to 9036 while Nasdaq skidded 60 points to 1710.

On the upside

While JDA Software Group (Nasdaq: JDAS) reported slightly lower third quarter earnings, the results surpassed analyst expectations.

Despite weak traffic, luxury accessories company Coach (NYSE: COH) reported higher first quarter revenue and earnings that topped estimates.

Third quarter earnings for American Express (NYSE: AXP) tumbled as consumer spending slowed but the results beat expectations.

On the downside

Avigen's (Nasdaq: AVGN) experimental drug to treat spasticity in multiple sclerosis patients failed a mid-stage clinical trial prompting a downgrade.

Sun Microsystems (Nasdaq: JAVA) swung to a first quarter loss that fell short of expectations as demand slowed amidst increased competition.

Celanese (NYSE: CE) reported higher third quarter earnings that topped estimates but the chemical producer lowered its full year outlook due to the sluggish global economy.

In the broad market, declining issues outpaced advancers by a margin of 5 to 2 on the NYSE and by nearly the same on Nasdaq. The Russell 2000 which tracks small cap stocks dropped 14 points to 533.