More Debt Ceiling Delays

The market is lower in early trading, although it is already bouncing from its opening lows. The President was on TV last night talking about the debt ceiling, and the continuing posturing that is going on. It's too bad that some are actually hoping for a market reaction to scare people into action.

There were more solid earnings reports last night, which would be garnering a lot more attention were it not for the debt debates. Positive reports came from Ford (F), Lockheed Martin (LMT) and Simon Properties (SPG). But Netflix (NFLX) gave lower guidance than the Street was looking for, and its stock is down -10% today.

In economic news, the Case-Schiller home price index fell -4.5% in May as the housing market continues to limp along a bottom.

Asian markets were higher overnight. India surprised markets by raising its benchmark rate 50 basis points to 8.00%.

The 10-year again tried to get above 3.0% but failed and currently sits near 2.97%. The bond market still does not seem too worried about the debt ceiling issue.

Oil prices are lower to $98.50, and gold prices are off a touch to $1611; the VIX is up 3% sitting right at the 20 level.

Trading comment: Some growth stocks (look at GOOG and AAPL) continue to power higher day after day despite all of the banter about the debt ceiling. I think the market could rip if we get some sort of resolution. My feeling is that there is considerable cash on the sidelines, waiting to get back into the market either way. If the market sells off from lack of action in Congress, the people will likely buy the dip. And if we get the resolution everyone wants, then a relief rally could unfold.

long AAPL, GOOG, SPG