NEW YORK (Reuters) – Concern that Greece might not accept the terms of a proposed new bailout deal brought a rally in global shares to a halt on Monday, while the euro pared earlier losses as some shorts covered their bets.

U.S. stocks edged lower, tracking European equities, while a gauge of global shares dipped slightly after four straight sessions of gains. Declines were not enough to derail an uptrend of five consecutive weeks of gains on both the U.S. benchmark S&P 500 index and global stocks measured by MSCI.

So far this year, the S&P is up 6.8 percent and global stocks have gained 8.6 percent.

The Greek debt crisis remained a concern to markets as political leaders had not agreed to accept unpopular public wage cuts and other measures to qualify for a new bailout from the European Union and the International Monetary Fund. Greece needs the cash by March to meet big debt repayments and avoid an unruly default.

The slow progress to sort out Greece’s cash problems has angered the country’s European partners and undermined investor confidence across markets.

“We’ve had an ultra-strong move, and I think it would be prudent to take some hedges to protect yourself,” said Randy Bateman, chief investment officer of Huntington Asset Management in Columbus, Ohio. “There will be more negativity if the (Greek) deal doesn’t go through.”

In afternoon trading in New York, the Dow Jones industrial average dropped 41.81 points, or 0.33 percent, to 12,820.42. The S&P 500 Index fell 2.80 points, or 0.21 percent, to 1,342.10. The Nasdaq Composite lost 6.50 points, or 0.22 percent, to 2,899.16.

NEW YORK, Feb 6 (Reuters) – Concern that Greece might not accept the terms of a proposed new bailout deal brought a rally in global shares to a halt on Monday, while the euro reversed losses as some shorts covered their bets.

U.S. stocks edged lower, tracking European equities, while a gauge of global shares dipped for the first session in five. Still, the declines were not enough to derail an uptrend of five consecutive weeks of gains on both the U.S. benchmark S&P 500 index and global stocks measured by MSCI.

The Greek debt crisis remained a concern to markets as political leaders had not agreed to accept deeply unpopular public wage cuts and other measures to qualify for a new bailout from the European Union and Internation Monetary Fund. Greece needs the cash by March to meet big debt repayments and avoid an unruly default.

The slow progress to sort out Greece’s cash problems has angered the country’s European partners and undermined investor confidence across all markets.

“It’s inevitable the risk profile that Greece represents is definitely going to cool the market tone. There is absolutely no way around that,” said Peter Kenny, managing director at Knight Capital in Jersey City, New Jersey.

“That lack of clarity, the protracted nature of this crisis and the fact that it simply will not go away, it’s a bit unnerving to people who have seen the (U.S. stock) market tack on some very nice early-year gains, and it forces people to want to be a little cautious.”

In late morning trading in New York, the Dow Jones industrial average fell 41.25 points, or 0.32 percent, to 12,820.98. The S&P 500 Index dropped 4.19 points, or 0.31 percent, to 1,340.71. The Nasdaq Composite lost 8.54 points, or 0.29 percent, to 2,897.12.

NEW YORK (Reuters) – Fears that Greece might not accept the terms of a proposed new bailout deal brought a rally in global shares and the euro to a halt on Monday, undermining the positive effect of better global economic data.

U.S. stocks edged lower, tracking European equities, while a gauge of global stocks fell for the first session in five. Still, the declines were not enough to derail an uptrend of five consecutive weeks of gains on both the U.S. benchmark S&P 500 index and global stocks measured by MSCI.

The Greek debt crisis remained a concern to markets as political leaders had not agreed to accept deeply unpopular public wage cuts and other measures to qualify for a new bailout from the European Union and International Monetary Fund. Greece needs the cash by March to meet big debt repayments and avoid an unruly default.

The slow progress to sort out Greece’s cash problems has angered the country’s European partners and undermined investor confidence across all markets.

“It’s inevitable the risk profile that Greece represents is definitely going to cool the market tone. There is absolutely no way around that,” said Peter Kenny, managing director at Knight Capital in Jersey City, New Jersey.

“That lack of clarity, the protracted nature of this crisis and the fact that it simply will not go away, it’s a bit unnerving to people who have seen the (U.S. stock) market tack on some very nice early-year gains, and it forces people to want to be a little cautious.”

In morning trading in New York, the Dow Jones industrial average was down 46.73 points, or 0.36 percent, at 12,815.50. The Standard & Poor’s 500 Index was down 4.55 points, or 0.34 percent, at 1,340.35. The Nasdaq Composite Index was down 6.69 points, or 0.23 percent, at 2,898.97.

NEW YORK, Feb 6 (Reuters) – Fears that Greece might not accept the terms of a proposed new bailout deal brought a rally in global shares and the euro to a halt on Monday, undermining the positive effect of better global economic data.

U.S. stocks edged lower, tracking European equities, while a gauge of global stocks fell for the first session in five. Still, the declines were not enough to derail an uptrend of five consecutive weeks of gains on both the U.S. benchmark S&P 500 index and global stocks measured by MSCI.

The Greek debt crisis remained a concern to markets as political leaders had not agreed to accept deeply unpopular public wage cuts and other measures to qualify for a new bailout from the European Union and Internation Monetary Fund. Greece needs the cash by March to meet big debt repayments and avoid an unruly default.

The slow progress to sort out Greece’s cash problems has angered the country’s European partners and undermined investor confidence across all markets.

“It’s inevitable the risk profile that Greece represents is definitely going to cool the market tone. There is absolutely no way around that,” said Peter Kenny, managing director at Knight Capital in Jersey City, New Jersey.

“That lack of clarity, the protracted nature of this crisis and the fact that it simply will not go away, it’s a bit unnerving to people who have seen the (U.S. stock) market tack on some very nice early-year gains, and it forces people to want to be a little cautious.”

In morning trading in New York, the Dow Jones industrial average was down 46.73 points, or 0.36 percent, at 12,815.50. The Standard & Poor’s 500 Index was down 4.55 points, or 0.34 percent, at 1,340.35. The Nasdaq Composite Index was down 6.69 points, or 0.23 percent, at 2,898.97.

NEW YORK (Reuters) – The U.S. stock-market surge in January may feel to some like having reached a remote mountain peak. It was a lot of work, but there are not many people to celebrate with.

The S&P 500 .SPX rose 4.4 percent in January, the second-best month for stocks since 2010. But trading volumes were down sharply – speaking to worries that the market’s gains are unsustainable.

Rather than a cause for concern, however, strategists say the reduced volume may be better down the road for individual investors frustrated in recent years with the fluctuations caused in part by volatile, computer-driven activity.

January, in contrast to wild daily moves during the summer of 2011, was relatively quiet. That kept high-frequency traders and hedge funds that capitalize on big shifts on the sidelines.

If the low-volatility environment persists, it could eventually bring in institutional investors who have largely sat on their hands in recent months, and help move stocks higher.

That hasn’t happened yet and the general public has also stayed on the sidelines. Data from the Investment Company Institute showed net outflows of more than $7 billion in the first three reporting weeks of the year from funds that invest in U.S. equities, while $16.7 billion flowed into bond funds.

Volume in exchange-traded funds was down considerably as well, irrespective of the asset class the ETF tracks, according to JPMorgan data. Trading volumes of ETFs in January that track equities, bonds and commodities were down on average 36 percent compared to the average daily volume in the second half of 2011.

NEW YORK (Reuters) – January has turned out to be strong for stocks with just two trading days to go. If you’re afraid to miss the ride, there’s still time to jump in. You just might want to wear a neck brace.

The new year lured buyers into growth-related sectors, the ones that were more beaten down last year. The economy is getting better, but not dramatically. Earnings are beating expectations, but at a lower rate than in recent quarters. Nothing too bad is coming out of Europe’s debt crisis — and nothing good, either — at least not yet.

“No one item is a major positive, but collectively, it’s been enough to tilt it towards net buying,” said John Schlitz, chief market technician at Instinet in New York.

Still, relatively weak volume and a six-month high hit last week make some doubt that the gains are sustainable.

But then there’s the golden cross.

Many market skeptics take notice when this technical indicator, a holy grail of sorts for many technicians, shows up on the horizon.

As early as Monday, the rising 50-day moving average of the S&P 500 could tick above its rising 200-day moving average. This occurrence — known as a golden cross — means the medium-term momentum is increasingly bullish. You have a good chance of making money in the next six months if you put it to work in large-cap stocks.

NEW YORK (Reuters) – January has turned out strong for equities with just two trading days to go. If you’re afraid to miss the ride, there’s still time to jump in. You just might want to wear a neck brace.

The new year lured buyers into growth-related sectors, the ones that were more beaten down last year. The economy is getting better, but not dramatically. Earnings are beating expectations, but at a lower rate than in recent quarters. Nothing too bad is coming out of Europe’s debt crisis – and nothing good, either – at least not yet.

“No one item is a major positive, but collectively, it’s been enough to tilt it towards net buying,” said John Schlitz, chief market technician at Instinet in New York.

Still, relatively weak volume and a six-month high hit this week make some doubt that the gains are sustainable.

But then there’s the golden cross.

Many market skeptics take notice when this technical indicator, a holy grail of sorts for many technicians, shows up on the horizon.

As early as Monday, the rising 50-day moving average of the S&P 500 could tick above its rising 200-day moving average. This occurrence – known as a golden cross – means the medium-term momentum is increasingly bullish. You have a good chance of making money in the next six months if you put it to work in large-cap stocks.

NEW YORK (Reuters) – January has turned out strong for equities with just two trading days to go. If you’re afraid to miss the ride, there’s still time to jump in. You just might want to wear a neck brace.

The new year lured buyers into growth-related sectors, the ones that were more beaten down last year. The economy is getting better, but not dramatically. Earnings are beating expectations, but at a lower rate than in recent quarters. Nothing too bad is coming out of Europe’s debt crisis – and nothing good, either – at least not yet.

“No one item is a major positive, but collectively, it’s been enough to tilt it towards net buying,” said John Schlitz, chief market technician at Instinet in New York.

Still, relatively weak volume and a six-month high hit this week make some doubt that the gains are sustainable.

But then there’s the golden cross.

Many market skeptics take notice when this technical indicator, a holy grail of sorts for many technicians, shows up on the horizon.

As early as Monday, the rising 50-day moving average of the S&P 500 could tick above its rising 200-day moving average. This occurrence – known as a golden cross – means the medium-term momentum is increasingly bullish. You have a good chance of making money in the next six months if you put it to work in large-cap stocks.

By David K. Randall and Rodrigo Campos

(Reuters) – The other shoe has dropped.

Standard & Poor’s slashed the ratings of nine European nations on Friday, and reassessed the credit worthiness of most of the euro zone. Germany, the bloc’s largest economy, was spared.

France and other sovereign bonds suffered a one-notch downgrade while Portugal, Italy, Spain and Cyprus were cut by two notches.

The moves come about a month after S&P warned that high borrowing costs and political stalemates would result in downgrades in several countries that use the euro.

With Europe’s debt crisis behind much of the stock market’s recent volatility and S&P’s downgrade of U.S. debt in August, many investors considered ratings cuts in Europe all but inevitable.

Here are some steps that investors can take on how to play European debt downgrades, over both the short and long term.

NEW YORK (Reuters) – Stock index futures dipped on Friday after JPMorgan Chase reported lower quarterly profit and ahead of trade and consumer sentiment data.

JPMorgan Chase & Co (JPM.N: Quote, Profile, Research, Stock Buzz) shares fell 3 percent to $35.75 in premarket trading after the bank said fourth-quarter profit fell as the European debt crisis weighed on trading and corporate deal-making. The Select Sector Financial SPDR exchange-traded fund (XLF.P: Quote, Profile, Research, Stock Buzz) dropped 1 percent.

“Their results show that there are major headwinds against the banking industry and it requires a strong management team to battle the headwinds,” said Rick Meckler, president of investment firm Libertyview Capital Management in New York, referring to JPMorgan Chase’s earnings.

“You may see some profit-taking from the banks today because they have run up so much heading into this.”

An index of U.S. bank shares is up 10.7 percent this year.

Further pressuring equities, Italy’s three-year debt costs fell, but demand failed to match the success of a Spanish sale the previous day, a reminder that Europe’s debt crisis is unresolved.

Futures on the S&P 500 nonetheless held near 5-month highs after rising in all eight previous sessions of the new year.