U.S. Stocks Drop on Fed Stimulus Bets Amid Budget Talks

U.S. stocks fell a fourth day, the longest slump in 10 weeks for the Standard & Poor’s 500 Index, as investors weighed economic data for clues on the timing of Federal Reserve stimulus cuts amid optimism over a budget deal.

Sears Holdings Corp. plunged 8.3 percent after Edward Lampert, the hedge-fund manager who for the past eight years tried to turn around the company, cut his stake to below 50 percent. Teradata Corp. lost 6.2 percent after Morgan Stanley reduced its rating on the stock. CF Industries Holdings Inc. jumped 11 percent after the fertilizer producer said its considering partnership structures.