(As of 7:20 am PST)
Stocks are seesawing this
morning in the final hours of the fiscal cliff debate. The market opened with a brief drift up as
investors remained confident that the President’s shortened vacation signaled a
fiscal cliff deal would be reached.
Negative sentiment returned shortly after the open as economic reports
showed consumer confidence dropping in December to the lowest level in 4
months. Senate majority leader Harry
Reid is currently addressing members of the senate on budget negotiations,
asking House Speaker Boehner to call his members home from vacation to get a
deal done. With the limit of the $16.4
trillion debt ceiling set to be reached on December 31st, along with
the automatic tax hikes and spending cuts set to occur on January 1st,
you could cut the tension on Capitol Hill with a knife. Gold and oil are turning lower today, while
interest rates are up slightly.
Volatility, which started the day down, has reversed course. Negative momentum is taking hold with all
three indices shedding .75%. It’s going
to be a closely watched next 48 hours.
