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U.S. stocks flat to lower on euro zone uncertainty; DOW down 0.09%

Published 01/23/2012, 04:21 PM
Updated 01/23/2012, 04:23 PM
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Investing.com - U.S. stocks closed flat to lower on Monday, as investors await confirmation of Greek debt negotiation success and further word from Brussels  

At the open of U.S. trade, the Dow Jones Industrial Average dropped 0.09%, the S&P 500 added 0.05% and the Nasdaq Composite gave back 0.09%.    

Traders were confused as The Financial Times Deutschland reported that negotiators for Greece have broadly agreed on the terms of a debt swap. However, the parties are still trying to agree on coupons.  

France's Finance Minister, Francois Baroin, stated that Greek debt negotiations are making tangible progress, while German Finance Minister, Wolfgang Schaeuble made clear that he is confident the negotiations will be completed, from the Brussel's meeting  

However, bondholders working on the debt swap said they made their maximum offer leaving it up to the European Union and International Monetary Fund  to decide whether or not to take the deal.    

Hayes Miller of Baring Asset Management explained the confused market to Bloomberg, " The bulls were able to flex their muscles a bit and the bears  cant really point to a while lot of tangible news that's really going to change matters much."  

Financial shares jumped between gains and losses as Bank of America ended the session up 2.8% due to the CEO's efficiency plan, while the sector moved from being down 0.3% to up nearly 1%.  

Energy shares led the bulls higher with Chesapeake Energy soaring 6.6% after stating it will cut output due to natural gas hitting 10 year lows last week.  

Research in Motion plunged 7.1% in a management shakeup.  

Meanwhile, Netflix gave back 5.3% after stating it is likely to show a first quarter forecast well below the expected numbers.

After the close of European trade, the EURO STOXX advanced 0.60%, France's CAC 40 climbed 0.51%, while Germany's DAX added 0.50%. Meanwhile, in the U.K. the FTSE 100 soared 0.94%.  

Investors are awaiting preliminary manufacturing and service sector data in the euro zone on Tuesday, as well as the Bank of Japan's interest rate statement and press conference.





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