- Associated Press - Tuesday, July 26, 2011

NEW YORK — Stocks are closing lower as U.S. lawmakers remained at a stalemate over raising the country’s borrowing limit. Industrial companies fell following disappointing results from 3M and U.S. Steel.

Republican and Democratic lawmakers have offered competing proposals to avoid a default on the government’s debt. If an agreement is not reached by Aug. 2, the U.S. won’t have enough cash to pay all its bills.

The Dow Jones industrial average fell 92 points, or 0.7 percent, to close at 12,501 Tuesday. The S&P 500 fell 5, or 0.4 percent, to 1,332. The Nasdaq composite fell 3, or 0.1 percent, to 2,840.

About two stocks fell for every one that rose on the New York Stock Exchange. Volume was light at 3.7 billion shares.