More layoffs in the financial services industry and problems with the auto industry bailout sent the markets tumbling to a sharply lower close with the Dow plummeting 196 points to 8565. Nasdaq slumped 58 points to 1508.

On the upside

China Southern Airlines (NYSE: ZNH) received approximately $437 milllion from the Chinese government.

Greif (NYSE: GEF) reported higher fourth quarter earnings as sales climbed.

Yamana Gold (NYSE: AUY) increased its stock offering to 22.5 million shares.

On the downside

Lululemon Athletica (Nasdaq: LULU) reported higher third quarter earnings that topped expecations but warned that fourth quarter as well as full year results will fall short of estimates prompting a downgrade.

Ciena (Nasdaq: CIEN) swung to a fourth quarter loss as revenue dropped and the communications equipment maker forecast first quarter results below expectations.

Shares of Micron Technology (Nasdaq: MU) tumbled even after chief executive Steve Appleton said that the company will not layoffs any more workers.

In the broad market, advancing issues outpaced decliners by a margin of 10 to 9 on the NYSE while advancers were on par with decliners on Nasdaq. The Russell 2000 which tracks small cap stocks slipped 2 points to 475.