Yesterday's vote on the House bill never happened as it was postponed with the House Speaker Boehner realizing he didn't have the votes to pass it. Arm-twisting late into the night were unable to get the last votes needs and the rift within the House Republican caucus is wide open for everyone to see.

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Boehner will race against the clock to try and come up with a plan that does have enough support to pass his chamber, but his position at the bargaining table is already diminished, and it has been signaled loud and clear that his plan is dead-on-arrival in the US Senate.

Therefore, all this effort and time spent to pass his version of the debt ceiling bill, will meet a quick end in the Senate, and as we get to the weekend we are not any closer to having a deal in place that would lift the debt ceiling next Tuesday at the August 2nd deadline.

House Republicans are set to meet at 10:00AM ET.

If Boehner's bill passes it can be used as part of negotiations for a compromise bill that can make it through both the Senate and the House, however we'll see if yesterday's debacle has already made it so that Boehner is not speaking from a place of authority, from even within his own party.

The President meanwhile will have to take one of 2 options come August 2nd. He could invoke an obscure constitutional amendment to raise the debt ceiling unilaterally or the Treasury will have to prioritize payments, choosing between paying bond holders or Social Security pension recipients, for example.

China showed its concern, sharply criticized U.S. politicians, saying the world's largest economy has been "kidnapped" by "dangerously irresponsible" politics.

The setback for Boehner is keeping financial markets on edge with investors seeking out safe haven in the JPY and CHF, though a flare up in the European sovereign debt situation is keeping the EUR pressured as well. US S&P 500 futures are weaker heading into the cash-open for equities, but have managed to pare some of the steeper losses that we saw overnight.

In addition to what happens with the debt ceiling, traders will be eyeing the first release of US 2nd quarter GDP.