Stocks were mixed at the open after Fitch ratings agency downgraded Japan’s credit rating from triple A to double A+ with a negative outlook, on fears that the country’s public debt will reach 239 percent of its gross domestic product by the end of the year. Japanese Finance Minister Jun Azumi saidthe government would make efforts to implement social welfare and tax reforms.
European shares ended higheramid hopes that euro zone leaders will reach some form of agreement on a policy response to the debt crisis when they meet in Brusselson Wednesday.
Meanwhile, the Organization for Economic Cooperation and Development (OECD) projected that global growth would ease to 3.4 percent this year from 3.6 percent in 2011. The group also showed support for Eurobonds—a policy that new French President Francis Hollande raised over the weekend.
Google completed its acquisitionof Motorola Mobility in a deal worth $12.5 billion and chose a new CEO for the cellphone maker.
Express plunged almost 30 percent after the apparel retailer posted lower-than-expected results and slashed its full-year earnings forecast. Urban Outfitters rallied after the clothing retailer topped earnings expectations.
Dell and Take Two are scheduled to report earnings after the close.
Patriot Coal tanked amid rumors the struggling coal producer has hired bankruptcy advisors. The company also reiterated that it has a commitment for a revolving credit line of $625 million. Rivals Arch Coal and Alpha Natural were also lower.
Bayer and Onyx Pharmaceuticals failed to show in a late-stage clinical study that their blockbuster drug Nexavar can prolong the lives of patients with lung tumors, the largest target group in the cancer market.
Treasury prices held their lossesafter the government auctioned $35 billion in 2-year notes at a high yield of 0.300 percent and bid-to-cover of 3.95.
—By CNBC’s JeeYeon Park (Follow JeeYeon on Twitter:
Coming Up This Week:
WEDNESDAY: Weekly mortgage apps, FHFA home price index, oil inventories, 5-yr note auction, Minneapolis Fed's Kocherlakota speaks, CME shareholders mtg, Kraft shareholders mtg; Earnings from Hewlett-Packard, Big Lots, Toll Brothers, NetApp, Pandora
THURSDAY: Durable goods orders, jobless claims, 7-yr note auction, BlackRock shareholders mtg, Goldman Sachs shareholders mtg, McDonald's shareholders mtg; Earnings from Costco, Tiffany
FRIDAY: Consumer sentiment, USDA food prices outlook
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