Stocks fall again on Washington woes

Written By limadu on Kamis, 03 Oktober 2013 | 21.29

NEW YORK (CNNMoney)

The Dow, Nasdaq and S&P 500 were all lower in early trading. They were little helped by the morning's economic news that jobless claims rose slightly. More federal workers could file in the coming weeks if they remain on unpaid leave for a while due to the shutdown.

Meetings at the White House between congressional leaders and President Obama have failed to produce a breakthrough. That's making investors jittery. The Dow has dropped for eight of the past 10 trading days.

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"I think probably at the beginning of the week people didn't think it would take so long to sort out," said David Jones, chief market strategist at IG Markets in London. "The fact that it's dragged on is making people a little bit nervous."

More troubling for Wall Street is the risk that the political stalemate could prevent the debt ceiling from being raised, meaning the government may not be able to pay all its bills later this month.

Related: Countdown to a debt ceiling default

What's moving: Tesla's stock continued to fall Thursday morning after a fiery crash near Seattle, Wash., which sparked concerns about the safety of the car maker's Model S sedan. Tesla (TSLA) said the fire happened after the car crashed into a "large metallic object."

Related: Fear & Greed Index still consumed by fear

United Technologies (UTX, Fortune 500) shares were down nearly 1% after the defense contractor announced that it would likely furlough 2,000 workers starting next week, thanks to the government shutdown. About 800,000 federal employees have already been furloughed.

Asian markets ended mixed. European markets were also mixed in midday trading. To top of page

First Published: October 3, 2013: 9:55 AM ET


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