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The Associated Press August 2, 2011, 9:41AM ET

Stocks fall ahead of Senate vote on debt limit

Stocks are falling in early trading ahead of a Senate vote to raise the nation's borrowing limit.

The Treasury Department has said that Congress must raise the debt ceiling by the end of Tuesday or the government won't be able to pay all its bills. The Senate is expected to vote on the bill at noon.

Signs that U.S. consumers are pulling on spending back added to concerns about the U.S. economy. The Commerce Department said consumers cut their spending by the largest amount in two years in June.

In early trading the Dow Jones industrial average is down 60 points, or 0.5 percent, to 12,072. The S&P 500 is down 8, or 0.6 percent, to 1,279. The Nasdaq is down 11, or 0.4 percent, to 2,733.

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