The political wrangling over US debt and lack of progress in finding a way out may hammer stocks in the coming week. Earnings for most companies could fade over debt ceiling issues if house and senate do not react soon. Despite all the negotiations between Republicans and Democrats there still not a solid deficit solution to prevent government default for the first time.
As the talks intensity pressure is being diverted to the markets where portfolio managers are swimming on a sinking market. Recent economic reports of the US economy have raised doubt on the recovery and people can vividly see the signs of a stagnating economy. The market can still recover if the debt issues drama is solved soon.