Stocks Ended Lower on Debt Fears

U.S. stocks closed lower Tuesday on mounting concerns lawmakers would fail to ink a deal that would prevent a U.S. debt default, and disappointment over some companies’ earnings. The Dow Jones Industrial Average dropped 91.50 points, or 0.73%, to 12,501.30. The S&P 500 fell 5.49 points, or 0.41%, to 1,331.94. The Nasdaq Composite lost 2.84 points, or 0.10%, to 2,839.96.

The United States will lose its top-notch AAA credit rating from at least one major rating agency, according to a Reuters poll that also found wrangling over the debt ceiling has already damaged the economy.

Executives from rating agencies Standard & Poor’s and Moody’s Investors Service are scheduled to testify on Wednesday on attempts to reform the credit rating industry and the role it is playing in the U.S. debt ceiling debate.

Electronic Arts Inc, the video game maker behind “FIFA” and “Madden,” reported a 3 percent decline in first-quarter adjusted revenue as customers bought fewer video games than a year earlier. For the three months ended June 30, profit rose to $221 million, or 66 cents per share, the company said on Tuesday.

Asset manager Affiliated Managers Group Inc. said Tuesday its second-quarter profit surged 81 percent as asset inflows increased from mutual fund, institutional, and high net worth investors. Results exceeded Wall Street expectations, pushing shares higher. Net income rose to $45.5 million, or 85 cents per share, from $25.2 million, or 53 cents per share. Revenue grew 39 percent to $462.3 million from $332.1 million.


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