43 F
Indianapolis
Friday, March 29, 2024

Stock futures sink after debt talks hit impasse

More by this author

“font-family: Verdana, Times, serif; font-size: 12px; text-decoration: none; line-height: 13px; color: #000000; font: normal normal normal 12px/normal verdana, helvetica, arial;”>

“font-family: Arial, Helvetica, sans-serif; font-size: 13px; -webkit-border-horizontal-spacing: 2px; -webkit-border-vertical-spacing: 2px;”>

NEW YORK (AP) — Stock futures fell Monday after congressional

leaders failed to agree on a deal to raise the nation’s debt

limit.

“font-family: Verdana, Times, serif; font-size: 12px; text-decoration: none; line-height: 13px; color: #000000; font: normal normal normal 12px/normal verdana, helvetica, arial;”>

“font-family: Arial, Helvetica, sans-serif; font-size: 13px; -webkit-border-horizontal-spacing: 2px; -webkit-border-vertical-spacing: 2px;”>

Lawmakers hoped to reach a compromise late Sunday, but those talks

stalled. President Barack Obama wants to raise revenues by letting

tax cuts for wealthy Americans expire. Republicans have pushed for

more spending cuts and have rejected higher taxes.

“font-family: Verdana, Times, serif; font-size: 12px; text-decoration: none; line-height: 13px; color: #000000; font: normal normal normal 12px/normal verdana, helvetica, arial;”>

“font-family: Arial, Helvetica, sans-serif; font-size: 13px; -webkit-border-horizontal-spacing: 2px; -webkit-border-vertical-spacing: 2px;”>

If an agreement is not reached, the U.S. is at risk of defaulting

on its debt after Aug. 2. That could have a catastrophic impact on

the global financial markets. The U.S. would likely lose its

coveted triple-A credit rating. Interest rates would rise for

millions of consumers. And stocks could fall the way they did

during the 2008 financial crisis, analysts say.

“font-family: Verdana, Times, serif; font-size: 12px; text-decoration: none; line-height: 13px; color: #000000; font: normal normal normal 12px/normal verdana, helvetica, arial;”>

“font-family: Arial, Helvetica, sans-serif; font-size: 13px; -webkit-border-horizontal-spacing: 2px; -webkit-border-vertical-spacing: 2px;”>

Most investors still think that scenario is a long way off. The

White House and Capitol Hill are expected to come up with a

last-minute deal to raise the $14.3 trillion borrowing limit. But,

even so, there are uncertainties over the possibility for higher

taxes and spending changes that could affect corporate

profits.

“font-family: Verdana, Times, serif; font-size: 12px; text-decoration: none; line-height: 13px; color: #000000; font: normal normal normal 12px/normal verdana, helvetica, arial;”>

“font-family: Arial, Helvetica, sans-serif; font-size: 13px; -webkit-border-horizontal-spacing: 2px; -webkit-border-vertical-spacing: 2px;”>

Ahead of the opening bell, Dow Jones industrial average futures are

down 84 points, or 0.7 percent, at 12,537. Standard & Poor’s

500 futures are down 10, or 0.7 percent, at 1,331. Nasdaq 100

futures are down 13, or 0.6 percent, at 2,415.

“font-family: Verdana, Times, serif; font-size: 12px; text-decoration: none; line-height: 13px; color: #000000; font: normal normal normal 12px/normal verdana, helvetica, arial;”>

“font-family: Arial, Helvetica, sans-serif; font-size: 13px; -webkit-border-horizontal-spacing: 2px; -webkit-border-vertical-spacing: 2px;”>

Bond prices are falling, pushing yields higher. The yield on the

10-year Treasury note rose to 3.02 percent from 2.96 percent late

Friday.

“font-family: Verdana, Times, serif; font-size: 12px; text-decoration: none; line-height: 13px; color: #000000; font: normal normal normal 12px/normal verdana, helvetica, arial;”>

“font-family: Arial, Helvetica, sans-serif; font-size: 13px; -webkit-border-horizontal-spacing: 2px; -webkit-border-vertical-spacing: 2px;”>

Gold and silver prices edged up as investors looked for relatively

safe places to put their money. Gold rose $13 to $1,614.50 an

ounce, while silver rose 34 cents to $40.48 an ounce. Gold has

risen 14 percent this year, while silver is up 31

percent.

“font-family: Verdana, Times, serif; font-size: 12px; text-decoration: none; line-height: 13px; color: #000000; font: normal normal normal 12px/normal verdana, helvetica, arial;”>

“font-family: Arial, Helvetica, sans-serif; font-size: 13px; -webkit-border-horizontal-spacing: 2px; -webkit-border-vertical-spacing: 2px;”>

European stocks were little changed even after Moody’s further

downgraded Greece’s bond ratings. The credit ratings agency warned

that it is almost inevitable the country will default on its debts

following a new bailout plan approved by European leaders last

week.

“font-family: Verdana, Times, serif; font-size: 12px; text-decoration: none; line-height: 13px; color: #000000; font: normal normal normal 12px/normal verdana, helvetica, arial;”>

“font-family: Arial, Helvetica, sans-serif; font-size: 13px; -webkit-border-horizontal-spacing: 2px; -webkit-border-vertical-spacing: 2px;”>

In corporate news, Kimberly-Clark fell 1 percent after the maker of

Kleenex tissues and Huggies diapers said its second-quarter profit

fell by 18 percent as a result of higher prices for its raw

materials and an increased tax rate.

“font-family: Verdana, Times, serif; font-size: 12px; text-decoration: none; line-height: 13px; color: #000000; font: normal normal normal 12px/normal verdana, helvetica, arial;”>

“text-decoration: none; color: #000066;” rel=”item-license” name=

“5980b4e3-d8d9-4136-98f4-4c9405afeecb” href=

“http://hosted.ap.org/dynamic/stories/U/US_WALL_STREET?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2011-07-25-09-04-48#5980b4e3-d8d9-4136-98f4-4c9405afeecb”>

Ā© 2011Ā The

Associated Press. All rights reserved. This material

may not be published, broadcast, rewritten or

redistributed.Ā Learn more about ourĀ 

“text-decoration: none; color: #000066;” href=

“http://hosted2.ap.org/APDEFAULT/privacy”>Privacy

PolicyĀ andĀ 

href=”http://hosted2.ap.org/APDEFAULT/terms”>Terms of Use.

- Advertisement -
ads:

Upcoming Online Townhalls

- Advertisement -

Subscribe to our newsletter

To be updated with all the latest local news.

Stay connected

1FansLike
1FollowersFollow
1FollowersFollow
1SubscribersSubscribe

Related articles

Popular articles

EspaƱol + Translate Ā»
Skip to content