Doubts on fiscal cliff-dodging budget deal by Jan. 1 plague markets Traders work on the floor of the NYSE before the opening bell at the New York Stock Exchange on Wall Street In New York City on December 27, 2012. This has widely been predicted to be too much of an adjustment for the economic recovery, which some analysts say would turn into a recession should the default budget take effect. In early afternoon trading Thursday, the Dow Jones industrial average lost 138.94 points or 1.06 percent to 12,975.65. The Nasdaq lost 32.12 points or 1.07 percent to 2,958.04. The Standard & Poor's 500 shed 14.52 points or 1.02 percent to 1,405.31. The 10-year treasury note was up 13/32 to yield 1.71 percent. The euro fell to $1.3222 from Wednesday's $1.3224. The dollar rose to 85.97 yen from 85.62 yen. In London, the FTSE 100 index rose less than 0.01 percent, adding 0.12 points to 5,954.30 after the Boxing Day holiday