tornado storm

Photo: Wikimedia Commons

Initially stocks were yawning all day. Then late in the day, as it became clear that the House GOP was crumbling, the selling began.Still nothing terribly dramatic.

But first, the scoreboard:

Dow: -91.50
NASDAQ: -2.84
S&P 500: -5.49

And now, the top stories:

  • The “day” started last night when Barack Obama and John Boehner delivered dueling primetime speeches on the debt ceiling fight. They didn’t break any new ground, though they did remind everyone that there’s no “deal” yet. See more below…
  • Markets initially drifted lower on the news, though there was nothing particularly dramatic on that front.
  • Nothing especially remarkable happened in Europe. UK GDP was right in line with expectations.
  • In the US, there was some economic data, which we’ll run through quickly: Case-Shiller was weak, but right in line with expectations. Consumer sentiment was slightly better than expectations. The Richmond Fed Manufacturing Index went negative, and new home sales was predictably horrendous. Click here for a complete guide to Case-Shiller cities >
  • The day started off benignly enough on the debt ceiling front. Harry Reid and John Boehner are pushing different bills, but in reality they’re pretty similar, giving rise to some hopes that they can be reconciled without a mountain of difficulty. But Boehner is running into problems in the House. His plan won’t get any Democratic support, and it also seems like he won’t get enough GOPers to vote for it. Boehner and Eric Cantor are whipping for it, but some hardcore conservative elements (Tea Partiers, the Club For Growth crowd) are fighting hard to get it.
  • So to get any deal done by August 2, it looks like it needs to be the Reid plan, which would need to survive a filibuster in The Senate, and then get at least a good chunk of Republicans to endorse it in the House. Click here for the full play by play of what happened today >
  • That’s not an easy road by any stretch.
  • Outside of stocks, the huge loser on the day was the US Dollar, which got killed against The Yen and the Swiss Franc. On the other hand, Treasuries actually rallied, so at least on that end, you’re still not seeing any hints of that freakout that people are worried about. Gold had a pretty good day.
  • On earnings, Netflix finally got slapped hard after earnings. Ford fell nearly 2% after earnings. Amazon is after the bell.
  • Looking for some stock ideas? Check out Goldman’s favourite growth stocks >

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