News Summary: Stocks drop on third day of shutdown

AP News
Posted: Oct 03, 2013 5:26 PM

DAY THREE: Stocks fell as the government shutdown dragged on into a third day. Investors are more worried about the approaching deadline for lifting the U.S. debt ceiling. The economy could plunge into a downturn worse than the Great Recession if Congress fails to raise the federal borrowing limit, the Treasury Department said Thursday.

SERVICES SAG: Investors also got discouraging news on the economy on Thursday. The Institute of Supply Management said that sales fell sharply, new orders dipped and hiring weakened at U.S. service companies.

DOWNGRADE FOR A 'HOT' ROD: Tesla Motors sagged $7.64, or 4.2 percent, to $173.31 after the electric car company had a rare downgrade from a financial analyst and on news of a fire involving one of its cars. The stock has soared 412 percent this year.