Lehman Brothers fell slightly after reporting a decline in quarterly earnings, but the results were better than analysts had expected. H&R Block tumbled after announcing it will be taking a large charge due to the closure of its Option One Mortgage subprime lender.

Countrywide Financial announced mortgage loan funding dropped 40% in November, which caused its shares to close lower for the day. Shares of Biogen Idec fell on reports that the company has not received any takeover bids.

Costco, largest U.S. warehouse club operator, closed lower despite meeting "street" expectations for its fiscal first quarter. - By UBS