U.S. Stocks Post First Weekly Drop in a Month on Budget

U.S. stocks fell for the week, giving the Standard & Poor’s 500 Index its first decline since August, amid concern that budget fights in Washington could lead to a government shutdown and slow the economic recovery.

Morgan Stanley and Goldman Sachs Group Inc. dropped at least 3.9 percent for the week, pacing losses among financial shares. J.C. Penney Co. dropped 30 percent after lowering its year-end liquidity forecast. Lennar Corp. and KB Home each climbed 2 percent as earnings topped analyst estimates and data showed new-home sales increased in August. Nike Inc. gained 6.2 percent as earnings were boosted by North American sales.