This is a day for incredibly lousy economic news. The US House failed to do its part to pass a debt ceiling increase, thus starting the serious phase of negotiations (given that finance bills must start in the House). But even worse are the GDP figures for this year, showing a terribly anemic 1.3% annualized growth in GDP for the last quarter and an incredible downward revision to the first quarter of just 0.4%. It would take unbelievable optimism to find something good in the news today.
Actually, the is something good. Initial unemployment claims have fallen to a seasonally adjusted 398k, continuing a rapid drop over the last month. What on earth can we make of that? Maybe a lot.