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 Friday, July 25, the 206th day of 2014. There are 159 days left in the year.

1864 -- 150 years ago: Walter Jones, of Co, F 23rd Ky, volunteers, lost a satchel on the Camden road, yesterday, containing his papers of discharge from the army.
1889 -- 125 years ago: E. W. Robinson purchased from Mrs. J.T. Miller the livery stable on the triangle south of Market square.
1914 -- 100 years ago: A municipal; bathing beach was advocated at the weekly meeting of the city commission by commissioner Rudgren, who suggested the foot of Seventh Street as an excellent location.
1939 -- 75 years ago: Floyd Shetter, Rock Island county superintendent schools, announced teachers hired for nearly all of the 95 rural and village grade schools in the county.
1964 -- 50 years ago: The mercury officially reached the season's previous high of 95 about noon today and continued upward toward an expected mark of 97.
1989 -- 25 years ago: Fort Armstrong hotel once the wining and dining chambers of Rock Island's elite is under repair. Progress is being made though at a seeming snail's pace to return the building to a semblance of its past glory for senior citizen's homes.








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