Markets traded quietly as two huge days lie straight ahead.
Wednesday afternoon, meetings among top level officials continue at the White House in an 11th hour effort to stave off U.S. default, with more talk of a short term fix tied to some sort of longer term plan that will take longer to mark up and pass through the legislative process. (Can you say “kick the can down the road until after the 2012 elections?)
The only problem I see with the old kick the can game is that the markets and ratings agencies might not be willing to play along anymore.
They’re certainly not playing along anymore in Europe where interest rates soar and Greek Prime Minister Papandreou was widely quoted in global media as saying that the upcoming European summit is a “make or break” moment for Europe and the efforts to stop Greek contagion from spreading to the other PIIGS.
The Greek leader is usually more upbeat and confident sounding than this tenor suggests and so the situation can’t be a happy feedback loop, that much is for sure.
At home, previously owned home sales hit a new low for the year, down for the third month running, and Wells Fargo was fined $85 million for alleged problems in its mortgage processing business.
It just doesn’t get any more exciting than this.
The clock ticks on:
T Minus 2 And Counting to Financial Armageddon
Dow Jones Industrials (DIA): -16; -0.1%
S&P 500 (SPY): -1; -0.07%
NASDAQ 100 (QQQ) -12; -0.4%
Russell 2000 (IWM): -2; -0.3%
Weekly Unemployment Claims, Continuing Claims
June Philadelphia Federal Reserve Report
June Leading Indicators
Have a great evening,
Disclaimer: Wall Street Sector Selector actively trades a wide range of exchange traded funds (ETFs) and positions can change at any time.
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