Greece Relief Uncertainty and Fed Exit Plan Drain Bulls' Energy

On the heels of yesterday's steep gains on hopes of relief for Greece's deficit problems, stocks are lower in late-morning action amid the absence of clarity as to whether European officials will extend a life-line to the Greek nation. Additionally, pressure on the equity markets has come as traders digest the text of the Fed Chief Ben Bernanke on the Fed's policy exit strategy, in which he gave no indication that the Fed was nearing the deployment of tools to rein in monetary policy as soon as some had expected. Treasuries are mixed, paring gains that followed early reports that showed an unexpected widening of the trade deficit and mortgage applications declined. In equity news, Dow member Walt Disney Co. posted better-than-expected fiscal 1Q results, while Sprint Nextel reported a larger-than-expected loss and Dean Foods missed and offered disappointing guidance. Overseas, Asia was mostly higher, while stocks in Europe are higher on the speculation about a potential bailout for Greece, but have pared gains amid the aforementioned uncertainty.