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Stocks drop as investors fret over budget fight

Published on NewsOK Modified: September 20, 2013 at 4:51 pm •  Published: September 20, 2013
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"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 10-year Treasury note fell to 2.74 percent, from 2.76 percent on Thursday.