Stocks fall on budget fight, economic worries
Stocks closed down on Wall Street on concerns about the economy Monday. A looming budget fight in Washington also weighed down stocks.
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Goldman Sachs, which began trading on the Dow Monday, also fell. The stock slipped $4.50, or 2.7 percent, to $165.20.Skip to next paragraph
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Utilities were the best performing industry group in the S&P 500 index as investors sought less risky places to put their money.
Nike and Visa, along with Goldman, also began trading on the 30-member Dow on Monday, replacing Alcoa, Bank of America and Hewlett-Packard.
The threat of a looming political showdown over the budget also weighed on investors.
The U.S. House of Representatives voted to defund President Barack Obama's health care law on Friday, a gesture that reminded Wall Street that the Republican-led House and the Democratic-controlled Senate are poised for a showdown over spending.
The debt ceiling must be raised by Oct. 1 to avoid a government shutdown, and a potential default on payments, including debt, later in the month.
"There seems to be a higher probability there will be more of a battle over that," said Scott Wren a senior equity strategist at Wells Fargo Advisors. "That could inject some volatility into the market."
Apple rose the most in the S&P 500 after shoppers snapped up 9 million of its newest iPhones following a rollout of the devices on Friday. The company's stock climbed $23.23, or 5 percent, to $490.60.
Shares of the troubled smartphone maker Blackberry rose 1.1 percent to $8.82 after financial company Fairfax Financial Holdings offered to buy the company in a deal valued at $4.7 billion.
The company's stock had been trading about 5 percent lower before the deal was announced. Blackberry plunged Friday after the company announced a loss of nearly $1 billion and layoffs of 4,500 workers.
The Standard and Poor's 500 index is up 19 percent for the year. If the index closed the year at its current level it would log its best gain since 2009, when it rose 23 percent.
In government bond trading, the yield on the 10-year Treasury note fell to 2.70 from 2.74 percent.
In commodities trading, the price of oil fell $1.16, or 1.1 percent, to $103.59 a barrel. The price of gold fell $5.50, or 0.4 percent, to $1,327 an ounce.
The dollar rose against the euro and fell against the Japanese yen.