US stocks wobble on mixed European news

Stocks wobbled between gains and losses on Monday, as investors turned their attention toward mixed headlines out of Europe, Associated Press reported on Monday.Greeces two main political parties reached a deal over the weekend to share power in a new government, increasing the likelihood that the country will move ahead with austerity measures it promised to implement as part of a financial rescue agreement with lenders.That relieved investors by reducing the chances of an imminent default by Greece, which would rattle financial markets and cause losses for major European banks.Europes debt crisis is far from over, however. Italys borrowing rates spiked Monday to the highest level since the country adopted the euro. Unlike Greece, Portugal or Irelandall of which received financial lifelinesItaly has too much debt to be rescued by its European neighbors.Prime Minister, Mr. Silvio Berlusconi has rejected suggestions that he resign to make way for more cost-cutting.The Dow Jones industrial average was down by 31 points, or 0.3 per cent, to 11,950 at 10:45 a.m. Eastern.The S&P 500 fell by five, or 0.2 per cent, to 1,248. The Nasdaq lost 21, or 0.8 per cent, to 2,665. The Dow had been up as much as 68 points earlier in the day.Technology and industrial companies led the S&P 500 downward. Industrials lost 0.7 per cent, pulled lower by Caterpillar Incorporated.Analysts said Europes debt crisis continues to overshadow corporate fundamentals, which are usually the driver of most stock trading in the US.Every day it seems like it is the butting of heads between whatever the latest rumor is out of Europe with good economic data and corporate earnings, a market strategist with ING Investment Management, Mr. Karyn Cavanaugh, Its overshadowing the fact that earnings are on track to be the best year ever.
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