Stocks Finish Lower Amid Growing European Concerns with American Express (AXP) and First Solar (FSLR) on the Move

Posted: Monday, January 30, 2012 4:27 PM EDT
By: Bruce Frey

Closing out the day... Stocks pared losses in afternoon trading Monday but remained in the red as investors focused on the standoff between Greece and its private creditors, as well as a surge in Portugal's borrowing costs. Today's shaky start comes after four straight weeks of gains for the S&P 500 and the Nasdaq. This week is jammed with economic data, with January's reading on jobs and unemployment due to take center stage Friday. US equities markets were relatively lightly traded Monday, which some traders said could have contributed to the mid-afternoon turnaround.

Stocks pared their losses as investors hope that European Union leaders, gathered in Brussels for their first summit of the year, will announce good news following their meeting. Prior to any formal statements, Swedish prime minister Fredrik Reinfeldt told CNN that 25 of 27 European Union members have signed on to a fiscal compact aimed at strengthening budgetary discipline and deepening political ties to avoid a repeat European debt crisis. He noted that the Czech Republic cannot sign on yet due to political obstacles, and U.K. Prime Minster David Cameron has already refused.

Investors are also looking for leaders to back a treaty to speed up implementation of the European Stability Mechanism, a move designed to strengthen the region's financial firewall. Despite hopes for progress in Europe, investors remained concerned about the lack of an agreement in Greece. Greek officials finished the weekend without a deal with private-sector creditors. Without such a deal, the country jeopardizes its access to bailout funds and might not be able to make a 14 billion euro debt payment that's due March 20.

Among the high volume stocks today Procter & Gamble (PG), Arcelor Mittal (MT), Dendreon Corp. (DNDN), American Express (AXP) and First Solar (FSLR) moved lower while Amylin Pharmaceuticals (AMLN), Thomas and Betts (TNB), Dell (DELL), Starbucks (SBUX) and JetBlue Airways Corporation (JBLU) posted gains. The Chicago Board Options Exchange Volatility Index closed the day up $0.87 at $19.40 a 4.70% increase for the day. The Put/Call Volume Ratio is at 0.91 while the Put/Call Open Interest ratio is at 0.91. [MarketIntelligenceCenter.com]