U.S. Stocks Decline on Greek Debt Stalemate

By Rita Nazareth - Jan 24, 2012 9:31 PM GMT+0700

U.S. stocks retreated, snapping a five-day rally for the Standard & Poor’s 500 Index, amid a stalemate between European policy makers and Greek bondholders over how to resolve the nation’s debt crisis.

The S&P 500 fell 0.4 percent to 1,311.45 at 9:30 a.m. New York time. The index rose 2.1 percent over the past five days.

“There’s too little movement on the political front in Brussels and Athens,” said Witold Bahrke, a senior strategist at Copenhagen PFA Pension A/S where he helps manage assets worth $45 billion. “Markets are experiencing a small setback as results on Greek debt talks are still too meager.”

Global stocks fell as European finance ministers pushed bondholders to provide greater debt relief for Greece, denting newfound confidence in Europe’s strategy for coping with the debt crisis. President Barack Obama tonight will lay out what he calls a “blueprint” for revitalizing the economy in his third State of the Union address before a joint session of Congress. The Federal Reserve begins a two-day policy meeting.

The S&P 500 yesterday capped its longest rally since December as data bolstered confidence in the economy and most quarterly reports exceeded forecasts. Of the 66 companies in the S&P 500 that reported results since Jan. 9, 42 posted per-share earnings that beat projections, Bloomberg data show.

To contact the reporter on this story: Rita Nazareth in New York at rnazareth@bloomberg.net

To contact the editor responsible for this story: Nick Baker at nbaker7@bloomberg.net