Aside from the fact that our federal government avoided defaulting on its debt, the economic news was bad all around on Tuesday:
* There was a report from the Commerce Department that consumer spending dropped in June, the first month in which it had done so in two years.
* The Institute for Supply Management reported that factory activity declined in July to its lowest level in two years.
* Not surprisingly, stocks were down sharply on Tuesday. All 30 Dow Jones average issues declined. The S&P 500 hit a new low for 2011.
Some pundits have reported this last development indicates that Wall Street is not happy with the parameters of the debt-ceiling deal, but that's not readily apparent from the market's reaction yesterday. Unfortunately, there was plenty of bad news that could have been responsible, in whole or in part, for the down day on Wall Street.
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