As noted in my post yesterday, the market was extended and some consolidation was anticipated. Weaker than expected data related to housing (Pending Home Sales drop 12.2%, biggest drop since stat began), jobs (ADP employment slowest in 4 yrs) and the usual loan loss estimates set the stage for some consolidation and sector profit taking. We had a minor bounce into the close as the 50 MA held as support on the first test.

Companies moving in after hours trading in reaction to earnings: Trading Up: UWN +7.5%; AVAV +5.5%; ADCT +5.1%; CASY +2.2%; JCP +2.0%; CWST +1.1%... Trading Down: JCG -9.9%; MATK -3.8%; WX -3.6%; SEED -1.9%... Companies moving in reaction to news: Trading Up: NABI +8.8% (announces continued positive NicVAX Phase 2b data at nine months; data demonstrates NicVAX efficacy); TGA +3.0% (acquires producing fields in Egypt for $59 mln; Assumes operation of eight development leases with 24 producing wells); CYTR +2.3% (Patent application licensed to RXi Pharmaceuticals issuesin Australia with broad claims to expressed RNAi)... Trading Down: TIBX -9.4% (sees Q3 EPS of $0.04-0.05 vs $0.07 consensus, revs of $130-133 mln vs $139.94 mln consensus); ENCY -7.3% (receives written response from FDA on THELIN; did not provide the substantial evidence of effectiveness needed for approval); CAV -4.5% (lowers EPS guidance and revs guidance; co expects loss for Q3); AIRN -3.9% (files preliminary prospectus relating to a proposed underwritten public offering of 14 mln shares of its common stock); ZUMZ -2.8% (Aug same store sales +17.4% vs +10.5% Briefing.com consensus); CPD -2.0% (announces FDA approval to market generic version of Coreg); MDT -1.1% (Treatment with Medtronic's dual chamber minimal ventricular pacing technologies led to 40% reduction in relative risk).