Stocks dip with budget deal in doubt


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Originally Posted Online: Dec. 24, 2012, 10:01 am
Last Updated: Dec. 24, 2012, 10:10 am
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Stocks fell in light trading Monday during a shortened holiday trading session with lawmakers running out of time to reach a deal that would prevent the U.S. from going over the so-called fiscal cliff.

The Dow Jones industrial average fell 32 points at 13,158. The Standard & Poor's 500 index gave up 3.3 points to 1,426.9. The Nasdaq composite slipped 8 points to 3,013.

Sen. Joe Lieberman said Sunday that it 'It's the first time that I feel it's more likely we'll go over the cliff than not,' following the collapse late Thursday of House Speaker John Boehner's plan to allow tax rates to rise on million-dollar-plus incomes. Wyoming Sen. Jon Barrasso, a member of the Republican leadership, predicted the new year would come without an agreement.

Stocks fell sharply Friday, with the Dow logging its biggest drop in more than a month, after House Republicans called off a vote on tax rates, leaving federal budget talks in disarray just days before sweeping tax increases and government spending cuts are scheduled to take effect. Failure to agree on a budget plan could lead to simultaneous spending cuts and tax hikes that many fear may push the economy back into recession.

President Barack Obama and Congress are on a short holiday break. Congress is expected to be back at work Thursday and Obama will be back in the White House after a few days in Hawaii.

Still, barring a dramatic sell-off in the year's final days of trading, stocks will end the year higher. The S&P 500 is currently 13 percent higher for the year, the Dow is almost 8 percent up and the Nasdaq is 16 percent higher.

The stock market will close at 1 p.m. Monday and be shut Tuesday for the Christmas holiday.

The yield on the 10-year Treasury note rose 1 basis point to 1.78 percent.














 



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  Today is Tuesday, July 29, the 210th day of 2014. There are 155 days left in the year.

1864 -- 150 years ago: Col. H.F. Sickless informs us that there will be new organization of troops in this state under the call for more men.
1889 -- 125 years ago: James Normoyle arrived home after graduating from West Point with honors in the class of 1889. He was to report to Fort Brady, Mich., as second lieutenant in the 23rd Infantry.
1914 -- 100 years ago: Austria Hungary declared war on Serbia. Germany and Austria refused an invitation of Sir Edward Grey to join Great Britain at a mediation conference.
1939 -- 75 years ago: Dr. William Mayo, the last of the three famous Mayo brother surgeons, died at the age of 78.
1964 -- 50 years ago: One of the biggest horse shows of the season was held yesterday at Hillandale Arena on Knoxville Road under the sponsorship of the Illowa Horsemen's Club.
1989 -- 25 years ago: Davenport is like a gigantic carnival this weekend with the Bix Arts Fest taking over 12 square blocks of the downtown area. A festive atmosphere prevailed Friday as thousands of people turned out to sample what the Arts Fest has to offer.








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