Lotar Mattey's Blog

NEW YORK (Reuters) - New York City May Be in near record temperatures frying goal Wall Street has-been feeling the heat for months. Wrangling over the U.S. debt ceiling and questions marks over corporate earnings mean Markets are Unlikely to get a break soon Any Time. Wall Street set to close IS ITS worst Three months in a year as July Draws to a close this week After a roller-coaster ride for Market. Stressed out fund managers hitting the beach in August May Find Themselves With Their fiddling BlackBerrys More than the little umbrella in Their cocktails. "I need a vacation, man.After all the stuff that's Happened in the Last Three months I'm pretty much shot, I'm getting weird, Even my 6-year-old looks at me, "Said one New Jersey-based fund manager, Who Was His packing bags for a destination in the Caribbean as temperatures topped 100 degrees Fahrenheit in New York City. With euro zone leaders HAVING Reached a deal for Yet Another bailout for debt-laden Greece, investors Will Be free to chew over the rancor in Washington with Even More attention. Negotiations Between President Barack Obama and the top Republican in the House of Representatives, John Boehner, still far from a deal Looked to Avert a looming U.S.default, lawmakers said on Friday, raising the likelihood of more volatility in the coming week if the weekend ends with no solution. "It's Likely year agreement in Any Form Will cause a relief rally for equities," Said Glenn Starkman, global head of sales trading at Dahlman Rose in New York. "Coming on the heels of Overall pretty good earnings numbers and fate Some of resolution in Greece and make for a That Could rally in the market, 'he said. Order on the Other Side of the corner, and the partisan dispute over Prolonged solving the country's debt crisis Means There Is Still a big downside risk. "Who Know Where That Is going to go," Said Nick Kalivas, an analyst at MF Global in Chicago. "We're vulnerable to a buyers' strike if we do not get any news." In addition, the corporate earnings season suggests Other Risks Could the dog market.Despite Generally Good results so far, There Have Been Some worrisome signs. The S & P 500 rallied 6 percent in the run-up to reporting season, goal misses earnings from big names like industrial Rockwell Collins (COL.N) and Caterpillar Inc. (CAT.N) weighed on the Dow and S & P 500 on Friday. Earlier in the week SEVERAL big consumer names Such as Whirlpool (WHR infrared room heaters.N) and Pepsi (PEP.N) Warned about sluggishness in Developed Markets, Sending Their shares sharply lower. "The market still has high degree of HAS Skepticism in it," Said Kalivas, summing up the earnings season so far. Kalivas Said He Will Be Closely FOLLOWING earnings from bellwethers and Economic Sector this week. Those include the package delivery company UPS (UPS.N), chipmaker Texas Instruments (TXN.N), and online retailer Amazon (AMZN.O). Around 30 percent of the S & P 500's $ 12.3 trillion market cap Have Reported earnings so far.THEY Have Consensus Estimates outpaced by 3.8 percent, and only 7 percent Have Missed Estimates, According To data from Morgan Stanley. Share Price Aim Of Those That Have Fallen Short of Estimates Have taken a severe beating. Given the weak sentiment A Few more prominent misses Could derail the market. "The market IS Punishing thesis misses Than It Is more rewarding beats, an asymmetry we Have Been and we forecast calling for continued Will," Morgan Stanley's U.S. equity strategist Adam Parker wrote in a note to clients. "Our view Remains That first half of the year numbers are achievable, aim the second half of the year looks Challenged, 'he said. This week has est aussi big week for economic data. Fears of a Slowdown in the Economy Have Been a large driver of market volatility over the last FEW months, and the releases coming very parsed Will Be Closely. THEY include early regional manufacturing data from Chicago and New York, a reading of consumer sentiment, and a first reading of U.S. growth for the second quarter, Expected to show the economy just Grew 1.9 percent in the extended period. Bob Doll, chief equity strategist at BlackRock, one of the world s largest fund managers with around $ 1.6 trillion of equities Under Management, Said That last week the U.S. economy at a critical juncture IS. Doll points out That Every Time Since 1960 year-on-year growth Has Fallen Under the 2 percent U.S. Economy Has Gone Into recession. "Our bottom line view Is That Investors Should Maintain a constructive bias Reasonably Toward risk assets, end aussi Should Be Prepared to scale back exposure if evidence Acceleration of Economic Growth Does not Materialize," Said Doll. (Additional reporting by Chuck Mikolajczak, Editing by Leslie Adler and Maureen Bavdek) Feeling the heat on U.S. debt, earnings