The markets recovered early morning losses but continued trading sharply lower at midday with the Dow plummeting 204 points to 11,035 over European debt concerns. Nasdaq plunged 31 points to 2450.

On the upside

Demand Media (NYSE: DMD) widened second quarter losses but the results were better than expected.

Biolase Technology (Nasdaq: BLTI) narrowed second quarter losses as revenue more than doubled and the medical technology firm announced plans to repurchase up to 2 million shares of common stock.

Pegasystems (Nasdaq: PEGA) reversed year ago losses to post a profit for the second quarter.

On the downside

IntraLinks (NYSE: IL) swung to a profit for the second quarter but the company forecast third quarter results below expectations.

SatCon Technology (Nasdaq: SATC) widened second quarter losses more than expected.

Amtech Systems (Nasdaq: PRMW) reported higher third quarter earnings and revenue but orders dropped.

In the broad market, declining issues outpaced advancers by a margin of nearly 2 to 1 on the NYSE and by nearly 7 to 2 on Nasdaq. The Russell 2000 which tracks small cap stocks tumbled 17 points to 679.