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.

Trade Deficit Widens, Traders Grapple with Greece Relief Beliefs

After yesterday's steep advance on growing expectations that Eurozone officials were preparing to provide support to Greece's deficit issues, stocks have moved slightly below the flatline in morning action amid conflicting reports on whether or not relief for Greece is indeed in the offing. Treasuries are higher as traders grapple with the lingering uncertainty in the Eurozone and following an unexpected widening of the trade deficit and after 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. Overseas, Asia was mostly higher, and stocks in Europe are moving higher on the speculation about a potential bailout for Greece.