Sounding the alarm on the debt ceiling: Treasury Secretary Jack Lew said Sunday that Congress was "playing with fire," with the possibility of a U.S. default only a little over a week away.
Deutsche Bank analyst David Bianco thinks the lack of a debt resolution will drag on the S&P 500 this week, but says there's little chance that the U.S. will default.
However, if it does, Bianco says the S&P 500 could sink 45%.
That echoes the sentiment of ETX Capital market strategist Ishaq Siddiqi, who said the debt ceiling debacle could lead to a "subsequent meltdown of global asset prices."
Last week, Bank of America analysts said the government shutdown wouldn't impact fourth-quarter GDP growth. But over the weekend, they changed their tune and lowered growth estimates for the fourth quarter to a 2% annual rate from 2.5%.
Earnings kick off this week: The first corporate results for the third quarter come out Tuesday, when aluminum maker Alcoa(AA) reports after the market close.
Two of the biggest banks -- Dow component JPMorgan Chase (JPM)and Wells Fargo(WFC) -- report Friday morning. Bank stocks, including JPMorgan, Bank of America(BAC), Citigroup(C), and Goldman Sachs(GZPHF), dropped nearly 2%.
What's moving: Shares of Apple(AAPL) rose after the iPhone maker was upgraded by Jefferies analyst Peter Misek.
"$AAPL Haters be Damned, Peter Misek Has Been Great on Apple (AAPL) Target = $600 http://stks.co/alZL Bullish," StockTwits users TimZwrote.
Still with Apple down nearly 30% from its all-time highs hit in 2012, many investors are still skeptical. "$AAPL "It's Tough to Get Past the Idea That Tim Cook Has 'No Clue'" http://stks.co/blUN," wrote ValTheGal.
Shares of BlackBerry (BBRY)gained nearly 4% on talk that new buyers are emerging for the troubled smartphone maker.
The buyers, according to reports, could consider buying Blackberry in parts. That's giving investors at least some hope that a deal may actually get done.
"$BBRY $BB.CA Financial Post: "BlackBerry survival seen in security not smartphones" http://stks.co/tVS7 Bullish," rgb66rgbwrote on StockTwits.
But some traders noted that looking at BlackBerry is a far cry from buying it.
"$BBRY Any Large corp looking for growth, will analyse the potential of any company, specially those with Billions in revenues," wrote i7up2001.