Wall Street retreats over debt limit accord

Dow Jones: 12,303.54 (–197.76) Nasdaq: 2,764.79 (–75.17) S&P 500: 1,304.99 (–26.95)US STOCKS fell yesterday, as lawmakers indicated they were no closer to reaching a compromise on the federal debt limit.

“The macro events are clearly driving the market,” Sarah Hunt, portfolio manager at Alpine Mutual Funds in Purchase, New York, said.

S&P, Moody’s and Fitch have said they may downgrade the US’s top AAA rating if lawmakers fail to resolve the stalemate.

The Dow Jones industrial average dropped 197.76 points, or 1.58 per cent, to 12,303.54.

The Standard & Poor’s 500 lost 26.95 points, or 2.02 per cent, to 1,304.99.

The Nasdaq Composite fell 75.17 points, or 2.65 per cent, to 2,764.79.

Caterpillar, the world’s largest maker of construction and mining equipment, slipped 3.7 per cent to $101.34.

General Electric decreased 2.4 per cent to $18.11.

Boeing rose the most in the Dow, adding 0.7 per cent to $70.63, as the aircraft maker lifted its forecast for full-year earnings.

Corning slumped 7.2 per cent to $16.04. The maker of glass for flat-panel televisions lowered its outlook for the global glass market and slashed its full-year sales forecast for its Gorilla Glass by 20 per cent to $800 million.

Juniper Networks plunged 21 per cent to $24.66. The second-largest maker of Internet networking equipment posted second-quarter profit excluding certain costs of 31 cents a share.

Cisco Systems, the largest maker of networking equipment, declined 3.7 per cent to $15.69.

Amazon.com gained 3.9 per cent to $222.52. The world’s largest online retailer reported second-quarter net income of $191 million, or 41 cents a share, topping the 34-cent average analyst estimate.

Total System Services had the biggest gain in the SP 500, adding 5.5 per cent to $19.15.

Delta Air Lines fell 5.1 per cent to $7.61. The world’s second-largest airline plans further seating-capacity cuts after higher fuel and maintenance costs pulled second-quarter profit below analysts’ estimates.

Dunkin’ Brands surged 47 per cent to $27.85 on the first day of trading. The operator of Dunkin’ Donuts coffee shops sold 22.3 million shares at $19 each. – (Bloomberg/Reuters)