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Debt ceiling to dominate sentiment

David Russell (david.russell@optionmonster.com)

Raising the government debt ceiling will probably be the only item on investors' minds today.

Yesterday saw a back-and-forth between the House and the Senate, with little resolution to a deadlock in place since the start of the month. Events are likely to unfold quickly today, making it difficult to anticipate timing of catalysts. If a deal remains elusive, it would probably be very bearish for stocks. An agreement between lawmakers and the White House would likely trigger buying.

There are only two economic reports on the agenda: weekly mortgage applications at 7 a.m. ET and the Federal Reserve's Beige Book report a 2 p.m. ET. Neither is likely to move the market, but they will provide useful clues on the state of housing and the broader economy.

There are also several big earnings reports. Those announcing before the opening bell include Bank of America, Bank of New York Mellon, Mattel, KeyCorp, PepsiCo, and Abbot Laboratories. Those reporting after the close include American Express, eBay, IBM, SanDisk, and Xilinx.

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