Markets Flatline As Eyes Focus On Europe
The markets are holding their breath today as all eyes continue to be on Europe. Will Italy continue in free fall? Will they need a mega bailout? Italy is one of the largest economies in Europe and a much bigger mess to clean up. The only positive with Italy is that the Italian banks hold most of the countries debt. This means it is slightly more contained than Greece, however, many times the size.
With the markets pausing, the SPDR S&P 500 ETF (NYSE:SPY) is trading at $132.05, +0.08 (+0.06%). The Euro versus the Dollar is near the flat line as well. Alcoa Inc. (NYSE:AA) reported earnings yesterday after the market closed. These earnings were essentially in line with expectations. The stock is flat on the day. Later this week, major earnings reports from some of the banks and Google Inc. (NASDAQ:GOOG) will be a major focus of Wall Street.
Wall Street is also focusing on the debt ceiling talks, though this is secondary to earnings and Europe. As of now the market has little fear an agreement will not be reached to raise the debt ceiling.