US STOCKS-Futures tumble,tax bill failure may make deal unlikely

Fri Dec 21, 2012 7:20am EST
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* Failure of Boehner's bill suggests compromise difficult

* Banking and energy shares could see biggest reaction

* Nike results beat expectations, US shares of RIM slump

* Futures drop: Dow 184 pts, S&P 19 pts, Nasdaq 36.5 pts

By Ryan Vlastelica

NEW YORK, Dec 21 (Reuters) - U.S stock index futures were sharply lower on Friday, dropping more than 1 percent after a Republican proposal for averting the "fiscal cliff" failed to pass, further eroding optimism that a deal would be reached quickly.

* Late Thursday, Republican House Speaker John Boehner conceded there were insufficient votes from his party to pass a tax bill, dubbed "Plan B," to help avert the cliff, a combination of tax hikes and spending cuts that could send the economy into recession if they take effect next year.

* The plan had called for tax increases on those who earn $1 million a more a year, a far smaller slice of taxpayers than President Barack Obama had asked for.

* The failure seemed to indicate it would be difficult to get Republican support for the more expansive tax increases Obama has asked for, making it less likely an agreement will be reached before the end of the year.   Continued...