Enviado: 1/8/2011 22:20On Monday August 1, 2011, 4:12 pm
Ultimately the debt ceiling debate may have done little else than give investors a respite from all the other things bedeviling the markets, worries that returned Monday with more bad news.
Markets sold off, despite earlier indicating a rally was in the works, and strategists began shuffling out notes encouraging clients to move to safety, even if they weren't endorsing the sell-off that occurred once the debt euphoria faded.
"The fundamentals are still the fundamentals of the market," said J.J. Kinahan, managing director at TD Ameritrade. "Debt deal or no debt deal, we have some fundamental problems in the economy that we're not dealing with."
Wall Street had been expecting a big rally once the warring sides in Washington reached a debt pact.
But a dismal report from the Institute for Supply Management showing the economy on the verge of contracting-coming just days after a 1.3 percent reading on growth in gross domestic product-served as a wake-up call that there are many market headwinds remaining, and volatility likely won't be going away anytime soon.
Ultimately the debt ceiling debate may have done little else than give investors a respite from all the other things bedeviling the markets, worries that returned Monday with more bad news.
Markets sold off, despite earlier indicating a rally was in the works, and strategists began shuffling out notes encouraging clients to move to safety, even if they weren't endorsing the sell-off that occurred once the debt euphoria faded.
"The fundamentals are still the fundamentals of the market," said J.J. Kinahan, managing director at TD Ameritrade. "Debt deal or no debt deal, we have some fundamental problems in the economy that we're not dealing with."
Wall Street had been expecting a big rally once the warring sides in Washington reached a debt pact.
But a dismal report from the Institute for Supply Management showing the economy on the verge of contracting-coming just days after a 1.3 percent reading on growth in gross domestic product-served as a wake-up call that there are many market headwinds remaining, and volatility likely won't be going away anytime soon.
