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Stock close higher, but Germany downgrade threat limits gains; traders hope for crisis pact
Stocks are closing modestly higher after a reported threat to Germany's credit rating deflated a morning market rally.
News reports Monday afternoon said that Standard & Poor's will put all 17 nations that use the euro on "creditwatch negative," meaning there is a 50-50 chance of a downgrade in the coming months.
Stocks had risen strongly in the morning after the leaders of France and Germany called for a new treaty to impose greater fiscal discipline on European countries.
The Dow Jones industrial average rose 78 points, or 0.7 percent, to 12,098. The S&P 500 rose 13, or 1 percent, to 1,257. The Nasdaq rose 29, or 1.1 percent, to 2,656.
About three stocks rose for every one that fell on the NYSE. Volume was below average at 4.1 billion.