Stocks fall on day 3 of government shutdown
NEW YORK — Investors sold stocks across the board Thursday as a U.S. government shutdown dragged into a third day and the U.S. inched toward a deadline on raising the nation’s borrowing limit.
They also got some disappointing economic news. The Institute of Supply Management said that sales fell sharply, new orders dipped and hiring weakened at U.S. service companies. The report covers industries including retail, construction, health care and financial services.
The stock market losses on Thursday marked an acceleration of gradual declines over the last two weeks. Stocks have fallen eight of the last 10 sessions as investors anticipated that negotiations over the federal budget would fail.
The Dow Jones industrial average fell 136.66, or 0.9 percent, to 14,996.48, its biggest decline since Sept. 20. It was down as much as 186 earlier.
The S&P 500 index dropped 15.21, or 0.9 percent, to 1,678.66. The Nasdaq fell 40.68, or 1.1 percent, to 3,774.34.
Twitter unseals papers for IPO; $1B is the goal
NEW YORK — Twitter has unsealed the documents for its planned initial public offering of stock and says it hopes to raise up to $1 billion.
The company is also disclosing that it generated $317 million in revenue in 2012 and that it had more than 218 million active users as of the end of June, up 44 percent from a year earlier. That compares with Facebook’s nearly 1.2 billion and LinkedIn’s 240 million.
The company disclosed last month that it had filed confidential IPO papers to start the process of going public. On Thursday, San Francisco-based Twitter unsealed the papers with the Securities and Exchange Commission.
Twitter booked a larger loss in the first half of this year than a year earlier, but it grew revenue. The company lost $69.3 million in the first six months of 2013, compared with $49.1 million at the same time last year. Revenue more than doubled to $254 million from $122 million.
Twitter did not say which stock exchange it plans to list its shares on, though the company said it intends to use the ticker symbol “TWTR.”
Instagram to show ads on photo-sharing app
NEW YORK — Instagram, the mobile photo-sharing app owned by Facebook Inc., says it will start showing “occasional” photo and video advertisements in the coming months.
It’s Instagram’s first step toward making money. While users can already follow brands and businesses, part of the app’s appeal has been its simplicity and, for some, a lack of advertisements.
To ease users into seeing ads, the company said in a blog post Thursday that it will focus on showing “a small number” of “high-quality photos and videos” from a handful of brands.
Facebook bought Instagram last fall for $715.3 million, $300 million of it in cash and the rest in stock. The app has more than 150 million users and is especially popular with teenagers and young adults.
U.S. 30-year mortgage rate is down to 4.22%
WASHINGTON — Average U.S. rates on fixed mortgages fell for the third straight week to their lowest point in three months, as a decline in consumer confidence and the onset of the government shutdown forced rates down.
Mortgage buyer Freddie Mac said Thursday that the average rate on the 30-year loan dropped to 4.22 percent from 4.32 percent last week. The average on the 15-year fixed loan declined to 3.29 percent from 3.37 percent.
Both are the lowest averages since early July.