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Overnight Markets: US stocks decline as budget stalemate continues
by Himanshu Singh on Oct 08, 2013 at 03:38
Wall Street declined on Monday, extending two weeks of losses, as lawmakers remained deadlocked over ending the partial US government shutdown or extending the nation’s debt limit to avoid a default.
The Dow Jones industrial average was down 136 points, or 0.90%, at 14,936. The Standard & Poor's 500 Index was down 14 points, or 0.85%, at 1,676. The Nasdaq Composite Index was down 37 points, or 0.98%, at 3,770.
Much of the government has been closed since the start of the month, resulting in up to a million workers being furloughed. Investors are also looking ahead to the upcoming debate over the debt ceiling, which could result in a default on US debt if not resolved. The deadline to increase the ceiling is 17 October.
Trade data on Tuesday and retail sales on Friday are among important economic reports that will not be released if the shutdown continues. Last week, non-farm payrolls, construction spending, and factory orders data were not released.
Financials and materials shares suffered the most. Capital One Financial (COF.N) lost 2% while American Express Co (AXP.N) shed 1.8%.
U.S.-listed shares of BlackBerry (BBRY.O) rose 3.6% after sources close to the matter said it is in talks with Cisco Systems (CSCO.O), Google Inc (GOOG.O) and Germany's SAP (SAPG.DE) about selling all or part of the company.
Apple Inc (AAPL.O) rose 1% after Jefferies & Co upgraded the stock, citing expected margin improvement.
Atossa Genetics Inc (ATOS.O) slumped 46% after the company said it would recall a medical device used to collect breast fluid for cancer detection along with a test that uses it.
International Business Machines Corp. (IBM) retreated 1.1% as Barclays Plc lowered its recommendation.
Cooper Tire & Rubber Co. sank 13% as Apollo Tyres Ltd. is seeking to cut its $2.5 billion offer to buy the US company.
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