World Economy

source----marketwatch.com U.S. stocks fell sharply on Wednesday as the political sparring over the nation’s debt limit continued and after the government reported orders for durable goods fell in June.

“The disappointing data add to the theme of a slowing global economy, which has been somewhat forgotten by some, with the markets’ focus on European and U.S. debt concerns,” Peter Boockvar, equity strategist at Miller Tabak, wrote in an emailed note.

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Extending losses into a fourth session, the Dow Jones Industrial Average DJIA -1.35% declined 106.68 points, or 0.9%, to 12,394.62, with all but two of its 30 components sliding.

The Standard & Poor’s 500 IndexSPX -1.79% shed 15.95 points, or 1.2%, to 1,315.99, with industrials the heaviest weight of the index’s 10 industry groups and telecommunications the sole sector on the rise.

Helping fuel worries about industrials firms, conglomerate Emerson Electric Co.EMR -6.85% warned on Wednesday of slowing economies in the U.S. and in Europe.

Juniper Networks Inc.’s JNPR -21.01% shares fell 20% a day after it warned its second-quarter results would fall below expectations.

Investors did embrace the market debut of Dunkin’ Brands Group Inc. DNKN +43.74% , with shares of the initial public offering rising 44% to $27.40 a piece.

The Nasdaq Composite Index COMP -2.40% fell 49.15 points, or 1.7%, to 2,790.81.

Treasury prices fell as traders readied for the government’s auction of $35 billion in five-year notes in the afternoon, with yields on the benchmark 10-year Treasury note 10_YEAR +1.12% rising to 2.966%.

Gold futures GC1Z -0.20% were lately off 50 cents at $1,618.80 an ounce, after rising to a record high of $1,1631.20 an ounce in New York, while crude-oil futures CL1U -2.26% slid $1.48 to $98.11 a barrel after government data showed a rise in inventory last week.

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For every stock on the rise three fell on the New York Stock Exchange, where 399 million shares traded as of 12:15 p.m. Eastern.

The Commerce Department on Wednesday said orders for U.S. durable goods unexpectedly dropped in June.Read full story on decline .

Wall Street’s nerves were further frayed as the deadlock over raising the debt limit showed few signs of abating in Washington, with a House vote on Speaker John Boehner’s plan to raise the debt ceiling and trim the deficit delayed at least a day.

Adding further fodder to the debate, the Congressional Budget Office said Senate Majority leader Harry Reid’s deficit-reduction plan would cut projected deficits by $2.2 trillion over 10 years, $500 billion less than the $2.7 trillion in future cuts estimated by the Nevada Democrat.

The CBO found a competing plan sponsored by Ohio Republican Boehner would cut the deficit by $850 billion over 10 years, $350 billion short of the $1.1 trillion he projected.See more of the CBO’s analysis .