10-7-13 10:58 AM EDT | Email Article

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


Subscribe to WSJ: http://online.wsj.com?mod=djnwires

(END) Dow Jones Newswires

10-07-13 1058ET

Copyright (c) 2013 Dow Jones & Company, Inc.
Copyright 2014 MarketWatch
Add a Comment

News   More...

Start Premium Trial Register For Free

P F Fund Financial Data (13,000+ funds)
P F Stock Financial Data (7,000+ stocks)
P F Stock and Fund Screeners (basic)
P F Investing Articles and Market Commentary
P F Articles Archive (>30 days)
P F Discuss (dozens of stock, fund, bond, and general bulletin boards)
P F Portfolio Manager (basic)
P F Morningstar Investment Classroom
P F Access Your Portfolio Anytime, Anywhere via Your Mobile Device
P   Morningstar Fund Analyst Reports (full research on 1,700 funds, ETFs, and CEFs)
P   Morningstar Stock Analyst Reports (full research on more than 1,100 stocks)
P   Portfolio Manager (advanced with 10 X-Ray analyses, including recommendations)
P   Portfolio Monitor (monthly and on-demand personalized portfolio statements)
P   Morningstar Proprietary Stock Information (stock star ratings, buy/sell prices, economic moat ratings, and more)
P   Morningstar 5-Star Stock and Fund Favorites & Red Flags eNewsletters
P   Premium Stock and Fund Screeners (advanced with nearly infinite ways to find the best securities for you)
P   Discounts on Morningstar newsletters, books, seminars, and more

Sign-up to Morningstar

Basic Access

Articles and Videos
Morningstar video reports, articles, data, and tools. Dig into our lineup of e-newsletters and investing classroom courses outlining sensible strategies for maximizing your investments.
Morningstar Discuss
Follow the buzz on individual stocks or fund families. Plus, read the latest posts from Morningstar members and analysts.
Portfolio Manager
Track your investments and watch lists with our Portfolio Manager. Customize your view with our comprehensive stock, fund, and ETF data.

Access these features and more when you sign up for Free Membership.
Join Morningstar today. It's Free.

Unlimited Access

Analyst Research
Gather in-depth, actionable insight on over 3,700 stock and mutual funds covered by Morningstar analysts. View our mutual fund Analyst Reports favored by professionals, savvy experienced investors, and new investors researching options for retirement savings, college plans, or other investment needs.
Portfolio X-Ray®
Ensure your portfolio is positioned exactly how you want with Morningstar's X-Ray Interpreter and Stock Intersection tools. A Barron's "Best of the Web" award winner for five years running, X-Ray Interpreter goes under the hood of your portfolio to provide a useful allocation, sector, and geographic analysis. And you can discover how much of a stock you really own, individually and through mutual funds, with Stock Intersection.
Investment Picks
Find new 5-star stocks (greatly undervalued companies) to consider daily. Our 5-star stock rating is a proven winner, consistently beating benchmarks like the S&P 500. Plus, browse our Fund Analyst Picks and Stewardship Grades to find shareholder-friendly mutual funds that are poised for outperformance.
Portfolio Monitor
Get a clear view of your investments with personalized reports about your portfolio. Receive monthly statements and generate reports on-demand to help you stay on track to meet your investment goals.

Access these features and more when you sign up for Premium Membership.
Start your free 14-day trial today online
Your subscription may be tax deductible. Please contact your tax advisor.

Content Partners
Morningstar - - UPDATE: Stocks decline as default standoff persists
Name |  Ticker |  Star Rating |  Market Cap |  Stock Type |  Sector |  Industry Star Rating |  Investment Style |  Total Assets |  Category |  Top Holdings |  Top Sectors |  Symbol |  Title Star Rating |  Category |  Total Assets |  Top Holdings |  Top Sectors |  Symbol |  Name Topic |  Sector |  Key Indicators |  User Interest |  Market Cap |  Industry Name |  Ticker |  Star Rating |  Market Cap |  Stock Type |  Sector |  Industry Star Rating |  Investment Style |  Total Assets |  Category |  Top Holdings |  Top Sectors |  Symbol / Ticker |  Title Star Rating |  Category |  Total Assets |  Symbol / Ticker |  Name Title |  Date |  Author |  Collection |  Popularity |  Interest Title |  Date |  Company |  Symbol |  Interest |  Popularity Title |  Date |  Company |  Symbol |  Interest |  Popularity Title |  Date |  Author |  Collection |  Interest |  Popularity

Previous: UPDATE: Stocks close lower, snapping 2-day win streak  |  Next: UPDATE: Stocks decline on concerns about fiscal discord