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Overnight Markets: US stocks fall on Budget concerns
by Himanshu Singh on Sep 25, 2013 at 04:07
Wall Street declined for a fourth day on Tuesday amid a lack of clarity on US fiscal and monetary policies as investors weighed prospects for easing tensions in the Middle East.
The Dow Jones industrial average was down 63 points, or 0.41%, at 15,339. The Standard & Poor's 500 Index was down four points, or 0.25%, at 1,698. The Nasdaq Composite Index was up three points, or 0.08%, at 3,768.
Shares fell amid a looming political showdown in Washington over budget talks that threaten to shut down the US government on 1 October.
Positive US homes data helped to offset some of the negative sentiment. US home prices rose 0.6% in July on a seasonally adjusted basis, the S&P/Case Shiller composite index of 20 metropolitan areas showed on Tuesday. That was a slightly slower pace than forecast, but a separate report from the US Federal Housing Finance Agency showed US home prices rose 1% in July from June.
Homebuilders gained after a report showed home prices increased by the most in more than seven years and Lennar Corp.’s profit beat analyst estimates. Applied Materials Inc. (AMAT) advanced 9.1% after agreeing to buy Tokyo Electron Ltd. for about $9.39 billion in stock.
Lennar (LEN), the third-largest U.S. homebuilder by revenue, rose 4.3% after fiscal third-quarter earnings topped analysts’ estimates.
Red Hat Inc. slumped 12% after billings at the largest seller of the Linux operating system trailed estimates.
JP Morgan Chase & Co. fell 2.2% for the biggest retreat in the Dow. The lender resumed settlement talks with the US as the government was preparing to sue the bank in California federal court alleging it misrepresented the quality of mortgage-backed securities it sold from 2005 to 2007, sources said.
Carnival (CCL) Corp. slipped 7.7% after the world’s largest cruise-ship operator forecast fourth-quarter results that trailed analysts’ estimates.
Applied Materials advanced 9.1% as the largest supplier of chipmaking equipment agreed to buy Tokyo Electron.
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