US stocks dropped sharply in mid-Thursday trading after Senate Majority Leader Harry Reid cautioned that the US was likely to fall over the fiscal cliff.
"It looks like that's where we're headed," said Reid when asked about the looming fiscal cliff earlier today. With only days to go before a series of automatic tax increases and spending cuts go into effect, President Obama and Congressional leaders are frantically trying to work out a deal in Washington, but a huge gap still remains between Democrats and Republicans.
The Dow Jones Industrial Average
(INDEXDJX:.DJI) was down 0.68% to 13,024.97 points as of 11:55 a.m. EST.
Dow financials lead the session’s decline, with Bank of America
(NYSE:BAC) sliding 2.30% to $11.28, JPMorgan
(NYSE:JPM) falling 1.91% to $43.12, and American Express
(NYSE:AXP) retreating 1.77% to $56.12 on fiscal cliff worries.
Other major financials, including Citigroup
(NYSE:C) (-1.86%), Morgan Stanley
(NYSE:MS) (-1.35%), Wells Fargo
(NYSE:WFC) (-1.34%), and Goldman Sachs
(NYSE:GS) (-1.53%), were down on the day as well. The bellwether Financial Select Sector SPDR ETF
(NYSEARCA:XLF), which tracks all financial stocks in the S&P 500, was down 1.25% to $16.16.
(NASDAQ:CSCO) also declined 1.76% to $19.58. It was reported earlier that the company’s CEO, John Chambers, has plans to sell 2.8 million of his company’s shares by mid-2014.
Energy stocks also traded lower, with Exxon Mobil
(NYSE:XOM) dropping 1.14% to $86.10 and Chevron
(NYSE:CVX) dipping 0.52% to $107.90.
The only Dow stock to buck the bearish trend was UnitedHealth Group
(NYSE:UNH), which inched up 0.06% to $54.25.
No positions in stocks mentioned.
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