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Stocks dip as investors wait for progress on 'fiscal cliff' talks

NEW YORK — Stocks closed little changed Tuesday on Wall Street as budget talks continued in Washington.

The Dow Jones Industrial Average closed down 13.82 points at 12,951.78 after trading in a narrow range of just 82 points during the session. The Standard and Poor's 500 fell 2.41 points to 1,407.05. The Nasdaq composite closed down 5.51 at 2,996.69.

Investors are waiting on developments from Washington in the budget talks, which are aimed at avoiding the "fiscal cliff." That refers to a series of sharp government spending cuts and tax increases that begin to kick in Jan. 1 and could eventually cause a recession.

President Barack Obama said Tuesday that a proposal that House Speaker John Boehner made on Monday was "still out of balance." Obama, in an interview with Bloomberg Television, insisted on higher taxes for wealthy Americans.

Republicans, led by Boehner, have balked at Obama's proposal of $1.6 trillion in additional taxes over a decade, and Monday called for increasing the eligibility age for Medicare and lowering cost-of-living increases for Social Security benefits.

Among stocks making big moves Tuesday, Darden Restaurants, Orlando-based owner of the Olive Garden, Red Lobster and LongHorn Steakhouse restaurant chains, fell $5.02, or 9.6 percent, to $47.40 after cutting its profit forecast for fiscal 2013.

Separately, analysts at Credit Suisse said that restaurant goers would "quickly lose their appetite" if the U.S. went over the "cliff" because the job cuts that would likely follow would curb discretionary spending.

Stocks dip as investors wait for progress on 'fiscal cliff' talks 12/04/12 [Last modified: Tuesday, December 4, 2012 7:38pm]

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