Stocks Plunged on Debt Debate

Stocks plunged Wednesday with no end in view to political sparring over raising the debt limit and economic data that only heightened uncertainty about the recovery.  The Dow Jones industrial average fell 198.75 points, or 1.6 percent, to 12,302.55.  The S&P 500 fell 27.05 points, or 2 percent, to 1,304.89. The Nasdaq composite fell 75.17 points, or 2.6 percent, to 2,764.79.

Crisis concerns rising, House Republican leaders shrugged off a White House veto threat and an outbreak of tensions within their own party Wednesday as they built support for legislation to stave off the government default threatened for next week. Worried Wall Street sent stocks plunging on fears that political gridlock would prevail.

Shares of Dunkin’ Brands Group Inc. soared nearly 47 percent on Wednesday, their first day of trading, feeding the demand of investors looking to trade in coffee and doughnuts

Newspaper publisher A.H. Belo Corp.’s losses grew in the second quarter as a slump in advertising worsened. It lost $6.8 million, or 32 cents per share, in the three months ending in June. That compared with a loss of $171,000, or a penny per share, at the same time last year.

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