Street Ended Off on Debt Standoff

U.S. stocks fell Monday, but benchmark indexes finished above the session’s worst levels as traders weighed the prospects for an agreement over the U.S. debt ceiling limit and the potential for a government debt default. The Dow Jones industrial average dropped 88.36 points, or 0.70 percent, to 12,592.80. The Standard & Poor’s 500 Index¬† fell 7.56 points, or 0.56 percent, to 1,337.46. The Nasdaq Composite Index lost 16.03 points, or 0.56 percent, to 2,842.80.

Lawmakers were locked in a standoff on Monday over dueling debt plans that offered little prospect for compromise, increasing the threat of a ratings downgrade and national default that could sow chaos in global markets.

Netflix Inc, the top video rental company, said its second-quarter profit and revenue rose from a year ago as the company added 1.8 million new U.S. customers.The company on Monday reported revenue of $788.6 million for the second quarter and earnings of $1.26 per share.

Delta Air Lines Inc. is expected to report a profit on Wednesday after a quarter when — like other airlines — it raised fares to make up for higher fuel prices.

Aerospace supplier Hexcel Corp posted better-than-expected quarterly results helped by strong sales to commercial aerospace customers. For the second quarter, net income was $37.4 million, or 37 cents a share, compared with $23.1 million, or 23 cents a share a year ago.

Fidelity National Financial Inc posted a higher-than-expected quarterly profit as cost cuts helped the No.1 U.S. title insurer boost margins at its core title insurance business. For the second quarter, net income attributable to shareholders was $80 million, or 36 cents a share, compared with $139.6 million, or 61 cents a share, a year earlier.

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