NEW YORK: US stocks turned negative in early trade Wednesday as investors weighed a bipartisan budget deal that aims to avert another US government shutdown.
About 35 minutes into trade, the Dow Jones Industrial Average lost 69.74 points (0.44 percent) at 15,903.39.
The broad-based S&P 500 fell 8.98 (0.50 percent) to 1,793.64 while the tech-rich Nasdaq Composite Index declined 20.61 (0.51 percent) to 4,039.88.
The action came after Democratic Senator Patty Murray and House of Representatives Republican Paul Ryan late Tuesday announced a federal budget deal for the next two years that would avert another government shutdown when US spending authority expires on January 15.
But the proposed deal, more modest than the major spending compromise earlier envisioned, now must win approval from both chambers of Congress.
Republican Senator Marco Rubio immediately denounced the agreement as another example of "Washington's irresponsible budgeting decisions."
Retailer Costco Wholesale dipped 1.6 percent after posting earnings of 96 cents per share, six cents shy of expectations. Revenues also lagged expectations.
Dow component Home Depot advanced 0.9 percent after saying it expects to achieve its long-term profit targets one year ahead of schedule thanks to strong sales. The company projects sales growth of 5.0 percent in 2014.
Credit-card company MasterCard jumped 4.5 percent after announcing a series of capital actions, including a stock split, an 83 percent dividend increase and a new program to authorize share repurchases of up to $3.5 billion.
"Today's actions reflect our ongoing commitment to deliver shareholder value as well as our confidence in the long-term growth and financial performance of our company," said Ajay Banga, chief executive of MasterCard.
Scripps Networks, which owns the Food Network, shot up 7.1 percent following reports that Discovery Communications is considering a bid for the company. Discovery rose 0.9 percent.
Technology giant Cisco Systems shed 1.8 percent after Citi initiated coverage of the network-equipment maker with a "sell" rating due to concerns that the company will lose data center market share.
Bond prices fell. The yield on the 10-year US Treasury rose to 2.82 percent from 2.80 percent, while the 30-year increased to 3.85 percent from 3.83 percent. Bond prices and yields move inversely.
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