Issue link: https://www.epageflip.net/i/176391
6A Daily News – Saturday, September 21, 2013 Stocks drop as investors fret over budget fight By JOSHUA FREED AP Business Writer Wall Street Washington's budget fight jolted investors on Friday, reminding them that the next few weeks could bring a lot of uncertainty. Wall Street hates uncertainty. Stocks fell in an afternoon sell-off that wiped out most of the gains from a rally earlier this week, when the Federal Reserve decided to keep its huge economic stimulus program intact. Major indexes were mixed in morning trading, but turned lower around midday after the U.S. House of Representatives voted to defund President Barack Obama's health care law. The vote itself wasn't a surprise, but it reminded investors that the Republican-led House and the Democratic-con- trolled Senate are poised for a showdown over federal spending. The debt ceiling must be raised by Oct. 1 to avoid a government shutdown, and a potential default on payments, including debt, later in the month. The threat of a default in August 2011 helped send global stock markets into a tailspin. ''What we've done is basically committed ourselves to two weeks of worry,'' said Sam Stovall, chief equity strategist at S&P Capital IQ. Until now, September defied the worriers. The stock market has bounced backed from an August swoon, despite a calendar loaded with potential rally killers. Fears of a conflict with Syria have faded, and Wall Street cheered when Larry Summers withdrew his name as a candidate to replace Federal Reserve chairman Ben Bernanke. Summers, a former Treasury secretary, was viewed as more likely to rein in the Fed's stimulus program, which has kept interest rates low and boosted corporate profits. As Middle East strife recedes from investors' minds, though, fears of budget gridlock grow. ''Geopolitics ... is much lower on the list. It's not off the list'' of investor worries, said David Darst, chief investment strategist for Morgan Stanley Wealth Management. ''No. 1 becomes the debt ceiling and the federal spending debate.'' The Dow Jones industrial average dropped 185.46 points, or 1.2 percent, to close at 15,451.09. That was 225 points below its all-time closing high reached Sept. 18 after the Fed's announcement. The Standard & Poor's 500 index fell 12.43 points, or 0.7 percent, to 1,709.91. All 10 industry groups in the S&P 500 fell, led lower by telecom companies and utilities. Even with the decline, the S&P 500 index is up 4.8 percent for the month, and 20 percent this year. In corporate news, BlackBerry plunged $1.79, or 17 percent, to $8.72 on the Nasdaq after announcing a loss of nearly $1 billion and layoffs of 4,500 workers. The company's phones have been eclipsed by phones from Apple and Samsung. Apple fell $4.89, or 1 percent, to close at $467.40 as its newest iPhone debuted at stores. Darden, the struggling parent of Olive Garden and Red Lobster, fell $3.52, or 7 percent, to $45.78 after posting a much lower quarterly profit and saying its president and chief operating officer will retire. Sales fell at its two flagship restaurant chains despite efforts to renew menus and advertising. Two new stocks had strong debuts. Tech security company FireEye surged $16, or 80 percent, to end at $36, and artificial intelligence company Rocket Fuel rose $27, or 93 percent, to $56.10. The yield on the 10year Treasury note fell to 2.74 percent, from 2.76 percent on Thursday. Professor on leave after tweet directed at NRA WICHITA, Kan. (AP) — A University of Kansas journalism professor was placed on indefinite administrative leave Friday for a tweet he wrote about the Navy Yard shootings which said, ''blood is on the hands of the (hash)NRA. Next time, let it be YOUR sons and daughters.'' David W. Guth, an associate professor of journalism, made the comment on Twitter after Monday's shootings in Washington, D.C., in which 13 people died, including the gunman. The tweet didn't attract much attention until Campus Reform.org posted a story Thursday, sparking a social media backlash that's spilled over into some state lawmakers Starting on September 3rd Abbey's Hair Works is now Blue Sun Hair Studio!! And I'm moving to 245 Pine Street (Behind Gipson Realty) 527-3974 So come check out my new place!! And I look forward to your business!! calling for his dismissal. The university also responded, as Chancellor Bernadette Gray-Little issued a statement Friday saying that ''in order to prevent disruptions to the learning environment,'' Guth was placed on indefinite administrative leave pending a review. His classes will be taught by other faculty members. Guth, who on Thursday told The Associated Press in a phone interview that his tweet ''got a conversation going — that was exactly what I wanted to do,'' agreed Friday that the university's action was appropriate in light of email threats he and others at the university had received. RUNNINGS ROOFING Sheet Metal Roofing Residential Commercial • Composition • Shingle • Single Ply Membrane "No Job Too Steep" " No Job Too Flat" Serving Tehama County No Money 530-527-5789 530-209-5367 CA. LIC#829089 PHYSICIAN REFERRAL A FREE SERVICE PROVIDED FOR YOUR CONVENIENCE 1-888-628-1948 Down! FREE ESTIMATES www.redbluff.mercy.org Owner is on site on every job We at The Salvation Army of Red Bluff would like to thank the community, businesses, and organizations who have DONATED wonderful items for our Salvation Army "Kids to Camp" Charity Golf Tournament Our tournament is being held at the Sevillano Links Golf Course in Corning Ca. October 4, 2013 WE STILL HAVE OPENINGS Thanks to • Tri Counties Bank • Bell Carter • Six Flags, Water Works Park • Corning Ford • Lake Shasta Caverns • Dale Thyark • Charlie Reynolds • Lake Shastina Golf Resort • Big 5 • Hearst Castle • Mount Shasta Golf Resort • Rio Skin Body Works • Graeagle Meadows Golf Course • San Francisco 49ers • Furniture Depot • Tickle Your Fancy Hair & Art • Ben's Truck & Equipment • California Kitchen & Co. • Los Mariachis • Applebee's • Discover Earth • House of Design • La Corona • Red Bluff Daily News • Tehama Family Fitness Center • Rolling Hills Casino • Teddy White • Red Bluff Union High School • S.F. Gaints • Gold Exchange • The Embroidery Shop • Sacramento ZooLogical