October 7, 2013

Stocks fall as shutdown drags on

Investors focus on one thing: Avoiding a government default.

By Steve Rothwell
The Associated Press

(Continued from page 1)

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Specialist Fabian Caceres works on the floor of the New York Stock Exchange on Monday. The stock market opened sharply lower as the U.S. government heads into a second week of a partial shutdown with no signs of a budget agreement in sight.

The Associated Press

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Investors will also be keeping an eye on earnings reports. Companies start releasing financial results for the third quarter this week. S&P 500 companies are projected to report slowing earnings growth for the fourth straight quarter, according to data from S&P Capital IQ.

The data provider predicts that earnings in the July-through-September period rose 3.1 percent, compared with growth of 4.9 percent in the previous quarter.

Among stocks making big moves:

— Cooper Tire & Rubber fell $3.79, or 12.8 percent, to $25.72 after the company filed a complaint in a Delaware court on Friday asking that the Indian company buying it quickly close on the deal. Investors took the news as a sign that the deal is in jeopardy.

— Mattel slipped $1.40, or 3.3 percent, to $41.15 after a Goldman Sachs analyst cut his earnings estimates for the toy maker. The investment bank also cut its estimates for Hasbro, which fell 80 cents, or 1.7 percent, to $46.53. Goldman is predicting a tough holiday season for the toy makers as children favor video games.

— Apple rose $4.72, or 1 percent, to $487.75 after a Jefferies analyst raised his rating and price target on the stock, saying improving margins should help the business until the launch of the iPhone 6.

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