The Federal Reserve cut its 2009 economic outlook to weigh down the markets to close lower with the Dow dropping 52 points to 8422. Nasdaq lost 6 points to 1727.

On the upside

Tween Brands (NYSE: TWB) reported a narrower than expected loss as revenue fell.

FBR Capital Markets analyst Adrienne Tennant upgraded Talbots (NYSE: TLB) and lifted her price target citing the company's efforts to stabilize liquidity problems.

Bank of Ireland (NYSE: IRE) announced plans to repurchase debt securities.

On the downside

GSI Group (Nasdaq: GSIG) warned that it may take an impairment charge of up to $235 million.

Second quarter earnings for Eaton Vance (NYSE: EV) plunged as revenue tumbled.

Ann Taylor (NYSE: ANN) swung to a first quarter loss due to lower revenue.

In the broad market, advancing issues outpaced decliners by a margin of nearly 5 to 4 on the NYSE and by a margin of more than 10 to 9 on Nasdaq. The Russell 2000 which tracks small cap stockslost 3 points to 489.