By Kate Gibson, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks declined on Monday, with the Dow industrials and S&P 500 extending a two-week losing streak amid a stalemate on Capitol Hill over preventing a government default.
"It's a very dangerous game of chicken going on and no resolution in sight, although that can change quickly," said Art Hogan, market strategist at Lazard Capital Markets.
"This is the logical reaction, you should avoid any risk in the middle of the process," he added.
After an almost 152-point drop, the Dow Jones Industrial Average (DJI) was down 73.60 points, or 0.5%, at 14,998.98, with Visa Inc. (V) and American Express Co. (AXP) leading declines that included 25 of its 30 components.
International Business Machines Corp. (IBM) fell 0.5% after Barclays PLC downgraded shares of the blue-chip company and computer-services provider.
Shares of former Dow member Alcoa Inc. (AA) slipped 0.6% after Morgan Stanley downgraded shares of the aluminum producer to equal-weight from overweight. Alcoa is scheduled to release third-quarter results on Tuesday.
The S&P 500 index (SPX) gave up 6.12 points, or 0.4%, to 1,684.38, with financials pacing sector losses.
The Nasdaq Composite (RIXF) shed 10.41 points, or 0.3%, to 3,797.34.
For every share rising, more than three declined on the New York Mercantile Exchange, where just under 118 million shares traded as of 10:30 a.m. Eastern. Composite volume cleared 547 million.
On Sunday, House Speaker John Boehner said in an interview on ABC's "This Week" that the U.S. House can not approve a hike in the debt limit without including other measures. The White House has said it will not bargain over funding the government or increasing the debt ceiling, saying a fundamental action of Congress should not be used as a bargaining chip.
Unless Congress hikes the debt limit, the nation's borrowing authority will lapse on Oct. 17, and the U.S. would run out of money to cover its bills in short order.
The yield on the 10-yield note that helps determine mortgage rates and other consumer loans fell 3 basis points to 2.619%, while the U.S. dollar (DXY) lost ground against the currencies of major U.S. trading partners including the yen (USDJPY).
On the New York Mercantile Exchange, the price of crude (CLX3) fell $1.42, or 1.4%, to $102.42 a barrel and gold futures (GCZ3) were up $13.40, or 1.1%, at $1,323.30 an ounce.
-Kate Gibson; 415-439-6400; AskNewswires@dowjones.com
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(END) Dow Jones Newswires
10-07-13 1058ETCopyright (c) 2013 Dow Jones & Company, Inc.
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