The Joplin Globe, Joplin, MO

Business

December 24, 2012

Stocks dip with budget deal in doubt at year’s end

NEW YORK — 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.

 

1
Text Only
Business
Poll

Given that the U.S. Supreme Court has ruled that electronic devices and communications are protected from searches and seizure without a warrant, do you think Missouri needs Amendment 9 added to its constitution?

A. Yes.
B. No.
     View Results
Facebook
Twitter Updates
Follow us on twitter
NDN Video
Raw: Japanese Soldiers Storm Beach in Exercises Raw: Weapons Fire Hits UN School in Gaza Raw: Rocket Launches Into Space With Cargo Ship Broken Water Main Floods UCLA Two Women Narrowly Avoid Being Hit by Train In Virginia, the Rise of a New Space Coast New Sanctions on Key Sectors of Russian Economy Crayola Announces Family Attraction in Orlando US Ready to Slap New Sanctions on Russia Kerry: Not Worried About Israeli Criticism Boater Rescued From Edge of Kentucky Dam Girl Struck by Plane on Florida Beach Dies Rodents Rampant in Gardens Around Louvre House to Vote on Slimmed-down Bill for Border Looming Demand Could Undercut Flight Safety Raw: 2 Shells Hit Fuel Tank at Gaza Power Plant Raw: Massive Explosions From Airstrikes in Gaza Giant Ketchup Bottle Water Tower Up for Sale Easier Nuclear Construction Promises Fall Short Kerry: Humanitarian Cease-fire Efforts Continue