Dow drops 90 points on debt deadlock

The Dow Jones closed more than 90 points lower on Tuesday amid escalating fears the US will default on its debt for the first time in its history.

The Dow Jones closed down 91.5 points, or 0.73%, at 12,501 as efforts to raise the debt ceiling ahead of the August 2 deadline reach political deadlock. Negative economic data also helped push the Dow into negative territory, with new home sales falling 1% in June. The debt ceiling fears took the gloss off strong corporate results, with Ford Motor's second quarter earnings beating expectations and diesel engine maker Cummins raising its 2011 outlook. Industrial conglomerate 3M Co was the day's big loser, closing almost 5.5% down after saying Japan's devestating earthquake and tsuna...