Investors differ over debt debate's stock impact

If the government doesn't get its act together with its debt limit, there's growing concern the stock market will react negatively

But highlighting just how unthinkable it would be for the U.S to default or have its credit rating downgraded, investors are threatened.

Most investors see any major setback in the creditworthiness of the U.S government, especially a lack of any agreement to avoid default, as a negative.

Financials and home builders were much effected during the stock market's woes in the credit crisis of 2008, there were areas that were hurt more than others.

Italy pays higher interest rate on latest bond sale

Investor continuous to worried about huge debt because Italy has had to pay much more to borrow than a month ago.

Italy had to pay an interest rate of 4.8% to sell 3.5bn euros ($5bn; £3.1bn) of three-year bonds - up 1.1 percentage points from June.

Despite multiple attempts to contain the Greek debt crisis spreading, Italy and Spain have seen their borrowing costs increased in recent weeks.

Italy has the biggest sovereign debt of any European country.

The rate on benchmark 10-year bonds, also sold by Italy on Thursday, was 5.77% - up 0.8 percentage points from June. Italy's debt is second only to Greece in the eurozone - whose huge debts have led to two bailouts.

Exxon profits up on higher oil prices

US oil biggest company Exxon Mobil has reported a rise in quarterly profits due to on the back of higher oil prices.

company said last year profit is 41% is higher than same last year profit, net profit  rose to $10.7bn (£6.6bn) for the three months to June.

The profit was its largest since the third quarter of 2008. The firm said production had risen by 10%.

Higher oil prices have also rise in profit such as Royal Dutch Shell, which reported a 77% jump in profits.

The price of oil has surged in the past year due to political unrest in oil-producing countries.

The price of a barrel of benchmark US light sweet crude oil is up to around $97 a barrel currently, from $78 a year ago.

Ford shares up despite second quarter profits declining

Ford motor company has seen its quarterly profits decline, but still beat Wall Street analyst expectations.

Net income fell to $2.4bn (£1.46bn) in the second quarter, from $2.6bn in the same period last year.  Approximately profit for second quarter is 200m lesser than last year same period profit. Company has improved its profit only in North America.

Shares rose 1.4% in early trade.

"Despite an unfavorable business environment, we further strengthened our balance sheet," said Ford president Alan Mulally.

Worldwide, ford Motor company announced plans to add 340 new Chinese dealerships by 2015, and also build its next next-generation "small SUV" in China.

The car manufacturer also raised its market share in the US and Europe.

Its revenues rose 13% to $35.5bn.

The company did not change its North American production outlook or its 2011 US sales forecast.

Ford was the only biggest US car manufacturer that was not subject to a US government bail-out during the financial crisis.