Wall Street's gains melt as Moody's cuts Greece rating

Dow after a good session finally closed in minor 0.2 % Red zone ...U.S. stocks ended little changed in a low-volume session on Monday after a downgrade of Greece's debt took the wind out of the market's sails.

Equities have been sensitive to debt problems in Greece and other European nations in recent months on concerns the euro zone's fiscal problems will hamper a global economic recovery.

Although not unexpected, the downgrade weighed on a market that had rallied on earlier data showing euro-zone industrial output surged in April, achieving the biggest year-on-year percentage gain in almost two decades.

The downgrade is "capturing the market a little bit off guard," said Nick Kalivas, senior equity index analyst at MF Global in Chicago. "The market is still very sensitive to these events and people are very cautious."

Moody's Investors Service downgraded Greece's government bond ratings on Monday afternoon to junk territory, citing the risks in the joint euro-zone and IMF rescue package for the debt-laden country.
Source http://finance.yahoo.com/news/Wall-Streets-gains-melt-as-rb-2634650231.html?x=0&.v=20

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