Stocks sink after Republicans cancel budget vote

NEW YORK (AP) - Stocks fell on Wall Street on Friday after House Republicans called off a vote on tax rates and left federal budget talks in disarray 10 days before sweeping tax increases and government spending cuts take effect.

The Dow Jones industrial average was down 106 points, or 0.8 per cent, at 13,206 after the first hour of trading.

The Standard & Poor's 500 index was down 12 points at 1,431. The Nasdaq composite index fell 32 to 3,018. All three indexes are still positive for the week.

The House bill would have raised taxes on Americans making at least $1 million per year and locked in decade-old tax cuts for Americans making less. Taxes will rise for almost all Americans on Jan 1 unless Congress acts.