European markets are called to open flat this morning.
Asian stocks rose as forecasts for higher earnings at companies from Canon Inc. to Baidu Inc. countered concerns the deadlock on the U.S. debt ceiling could derail the global economic recovery.
The stock market started the week in the red Monday, but losses were not nearly as devastating as some expected, after lawmakers failed to agree on a debt ceiling deal over the weekend.
The U.S. government is just eight days away from a possible default. But instead of selling off stocks in a panic Monday, investors mostly sat on their hands watching Congress haggle.
“They’re on the sidelines, waiting, and I don’t blame them,” said Muriel Siebert, founder of Muriel Siebert & Co. “We have never gone through a situation like this before.”
The Dow Jones industrial average lost 88 points, or 0.7%, with 26 of its 30 components falling.
Meanwhile, the S&P 500 fell 7 points, or 0.6%; and the Nasdaq fell 16 points, or 0.6%.
“When I look at my screen, almost everything is red. But they’re not down any significant amount. The market did nothing today and it’ because we made no progress with the debt ceiling,” Seibert said.
Events this week
Tuesday: Investors will have a busy day on Tuesday, with companies such as 3M, Ford, US Steel and First Solar reporting results.
Shipping giant UPS, which is typically considered an economic bellwether, also reports before the bell on Tuesday. The company is expected to post a profit of $1.04 per share.
The S&P Case-Shiller home price index is scheduled for release at 9 a.m. ET. The Conference Board’ July consumer confidence report and the Commerce Department’ new home sales report will be out at 10 a.m. ET.
Economists expect that home prices fell 4.4% in May, while consumer confidence fell to a reading of 56.0 in July. New home sales are expected to remain roughly unchanged at 320,000 units.
Video game publisher Electronic Arts and online retailer Amazon.com are scheduled to report their results after the closing bell.
Wednesday: Wall Street will get quarterly results from Dow component Boeing before the bell on Wednesday. Analysts expect the aerospace giant will post a profit of 96 cents a share, according to Thomson Reuters.
Other companies reporting before the bell include Dow Chemical, glass maker Corning and oil conglomerate ConocoPhillips.
The Commerce Department will release June durable goods figures at 8:30 a.m. ET. The Federal Reserve releasing its July “Beige Book” at 2 p.m. ET.
Economists surveyed by Briefing.com expect that durable good orders rose by 0.4% in June.
After the closing bell, credit card processing company Visa will report its results.
Thursday: Oil giant Exxon Mobil reports its quarterly numbers before the opening bell. Analysts expect that Exxon earned $2.33 a share, helped in part by elevated oil prices.
The Labor Department will put out its weekly jobless claims numbers at 8:30 a.m. ET; economists expect claims fell by 3,000 to 415,000.
Investors will also get results from MetLife and Starbucks after Thursday’ closing bell.
Friday: Two Dow members will report their results before Friday’ bell: drug maker Merck and oil giant Chevron. Analysts are looking for Merck to post a profit of 95 cents a share, while Chevron is expected to earn $3.56 a share.
Investors will get the first reading on second-quarter GDP at 8:30 a.m. ET. Out after the bell is the Chicago purchasing managers index and the University of Michigan consumer sentiment survey.