Career News 24/7: STOCKS GO NOWHERE AGAIN AS DEBT CEILING FIGHT HEATS UP: Here's What You Need To Know, January 14, 2013

Monday, January 14, 2013

STOCKS GO NOWHERE AGAIN AS DEBT CEILING FIGHT HEATS UP: Here's What You Need To Know, January 14, 2013

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Monday, January 14, 2013

The markets didn't move much. But trouble may be brewing as the U.S. inches closer to its debt ceiling.

First the scoreboard:

Dow: 13,507, +18.8, +0.1 percent
S&P 500: 1,470, -1.3, -0.0 percent
NASDAQ: 3,117, -8.1, -0.2 percent

And now the top stories:

This is the second trading session where stocks basically went nowhere. But no one's complaining considering the fact that stocks currently sit near their five-year high. However, Vitaliy Katsenelson of Contrarian Edge, notes that stocks are flat since 2000. And he recently gave a big presentation arguing that stocks could go sideways for another decade.
Meanwhile, Washington continues to wrestle over a deal that would address the debt ceiling. "If Congressional Republicans refuse to pay America’s bills on time, Social Security checks, veterans benefits will be delayed," Obama said during a press conference today. Check out this painting that describes what would happen if the U.S. defaults on its debt.
So, what's with the complacency in the markets? "A key investment lesson of the last five years is that politicians eventually reach a compromise although markets may suffer in the interim," wrote Goldman Sachs' David Kostin in a note to clients this week. "Investors have become accustomed to midnight negotiations in order to avoid one dire fate after another. Accordingly, downside may be limited this time."
Meanwhile, computer giant Dell is reportedly in talks to be bought out in a private equity deal. The stock jumped 13 percent on the rumor.
Shares of Apple fell by over 3 percent on a Wall Street Journal report that the tech giant was cutting orders for iPhone parts.
Don't Miss: The True Story Of The Time JP Morgan Saved America From Default By Using An Obscure Coin Loophole >