UPDATE: S&P Futures recover most of their losses following new reports, denials, and clarifications that Obama did not in fact "reject" but that discussions are and will be ongoing during the night. Most importantly, the meeting was inconclusive, which however seems good enough for stocks which have rebounded to pre-drop levels.
S&P futures are now over 15 points off the day's highs, as it seems equity investors were hoping for a Cumbaya moment after the White House meeting today. However, as Bloomberg reports,
- *BOEHNER LEAVES OBAMA MEETING WITHOUT SPEAKING TO REPORTERS
- *REPUBLICANS LEAVE WHITE HOUSE WITHOUT MAKING STATEMENT
- *OBAMA REJECTS REPUBLICAN PROPOSAL FOR SHORT-TERM PLAN: NYT
It would seem that Obama's "unconditional surrender or default" position has merely placed the pressure to act back on Boehner's shoulders.
Where did stocks drop to?
Rep. Cantor offers some hope still -
Majority Leader Cantor: White House meeting useful, 'we expect further conversations tonight'
It is clear, it would appear, that President Obama is sticking to his no-negotiation tactic (that Harry Reid confirmed this afternoon) and nothing will be done until government is re-opened...
For some depth on where we are in that debacle, here is NYTimes excellent inforgraphic: