US STOCKS-Wall St drops as Washington deadlock continues

Mon Oct 7, 2013 9:51am EDT
 
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article | Single Page
[-] Text [+]

* Debt ceiling deadline draws closer

* Cooper Tire slumps on buyout squabble

* Indexes off: Dow 0.99 pct, S&P 500 0.85 pct, Nasdaq 0.8 pct

By Chuck Mikolajczak

NEW YORK, Oct 7 (Reuters) - U.S. stocks dropped on Monday as the partial U.S. government shutdown dragged on with no signs politicians were willing to relax positions over the debt-ceiling limit or budget impasse.

Republican House Speaker John Boehner vowed on Sunday not to raise the U.S. debt ceiling without a "serious conversation" about what is driving the debt, while Democrats said it was irresponsible and reckless to raise the possibility of a U.S. default.

The United States faces a deadline of Oct. 17 to raise its $16.7 trillion debt limit or risk an unprecedented debt default. The two issues of emergency funding for the government to operate and increase the U.S. borrowing authority started out separately in the House but have been merged by the pressure of time.

"Now you've got not only the budget but the debt ceiling and time is running out and everybody knows it, including (the politicians)," said Terry Morris, senior vice president and senior equity manager for National Penn Investors Trust Company in Reading, Pennsylvania.

"The longer this goes on, the more the uncertainty, the closer the deadline and the more nervous investors are going to be."   Continued...