D.C. budget fight sends stocks to weekly loss

The budget fight may be happening in Washington, but it's investors on Wall Street who keep getting smacked.

Stocks fell Friday for the sixth day out of the last seven, and ended the week with a decline. Investors focused on the risk that the government could shut down Tuesday unless Congress agrees to a new spending bill. And the dispute is poised to continue into the middle of October as legislators debate raising the nation's borrowing limit.

In the closing minutes of trading Friday, President Barack Obama restated a vow not to negotiate with Congress under the threat of a shutdown.

The Dow Jones industrial average fell 70.06 points to close at 15,258.24. The Standard & Poor's 500 index fell 0.41 percent to 1,691.75. The Nasdaq composite fell 0.15 percent to 3,781.59.

Investors are also dealing with mixed economic signals.

A government report showed incomes and consumer spending grew slightly last month, suggesting anemic growth that is not strong enough to accelerate the economic recovery.

And a survey showed consumer confidence declined as Americans worried about the possible government shutdown and their own finances. Half of households said they expect no pay increase in the coming year. -- AP