* Debt ceiling deadline draws closer with no signs of
* Volatility index rises to highest since June
* BlackBerry shares up on interest from strategic buyers
* Indexes off: Dow 0.6 pct, S&P 500 0.4 pct, Nasdaq 0.6 pct
By Ryan Vlastelica
NEW YORK, Oct 7 U.S. stocks fell on Monday,
extending two weeks of losses, as a lack of progress in ending
the partial U.S. government shutdown or the debt-ceiling
standoff kept investors nervous.
Major indexes came off their morning lows in a volatile
session, but the S&P 500 was on track for its 10th decline in
the past 13 sessions.
The CBOE Volatility index, a measure of investor
anxiety, jumped 10 percent to 18.45, its highest since late
June. The VIX has gained for the past three weeks, and is up 41
percent over that period.
The deadline to increase the U.S. borrowing authority or
risk default is Oct. 17, with Congress deadlocked and no end in
In weekend comments, neither Republicans nor Democrats
offered any sign of progress and both blamed the other side for
"The market is vulnerable to further declines for as long as
the situation remains unclear. With each passing day, the market
becomes more restless," said Leo Grohowski, chief investment
officer at BNY Mellon Wealth Management in New York.
Grohowski, who helps oversee $175 billion in client assets,
estimated that each week the shutdown, which began Oct. 1,
continues could shave 10 to 15 basis points off gross domestic
"While that isn't a lot, the recovery is still too fragile
to withstand any long-term impact. It will start to have an
impact on earnings estimates, which will impact valuations," he
Nine of the S&P's 10 sectors were lower on the day, with
groups tied to the pace of economic growth, including financials
and materials, among the weakest of the day.
The only sector that rose was telecom, which is
considered a defensive play.
Among the biggest losers in the financial sector, Capital
One Financial lost 2 percent to $68.88 while American
Express Co lost 1.4 percent to $73.28.
The Dow Jones industrial average was down 85.96
points, or 0.57 percent, at 14,986.62. The Standard & Poor's 500
Index was down 7.38 points, or 0.44 percent, at 1,683.12.
The Nasdaq Composite Index was down 21.07 points, or
0.55 percent, at 3,786.69.
The S&P has fallen for two weeks and is down nearly 3
percent from its all-time high on concerns about Washington
U.S.-listed shares of BlackBerry rose 4.4 percent
to $8.03 after sources close to the matter said it is in talks
with Cisco Systems, Google Inc and SAP
about selling all or part of BlackBerry.
Apple Inc rose 1.7 percent to $491.17 after
Jefferies & Co upgraded the stock, citing expected margin
Atossa Genetics Inc slumped 44 percent to $3 after
the company said it would recall a medical device used to
collect breast fluid for cancer detection along with a test that
With the ongoing stalemate in Washington, trade data on
Tuesday and retail sales on Friday are among important economic
reports that will not be released if the shutdown continues,
Wilkinson said. Last week, non-farm payrolls, construction
spending, and factory orders data were not released.