U.S. stocks trimmed earlier losses yet ended in red amid renewed worries about the financial situation in Europe, weighed by uncertainties over a Greek debt swap agreement.
The Dow industrial average inched 0.05 percent lower to finish at 12,653.72. The Nasdaq Stock Market retreated 0.16 percent to end at 2,811.94. Standard and Poor's 500 lost 0.25 percent to close at 1,313.02 on Monday.
European leaders are meeting in Brussels with the focus boosting economic growth in the region even as impasse continued between Greece and its creditors over a debt-restructuring deal.
On the economic front, U.S. consumer spending fell less than 0.1 percent in December, below expectations of a 0.2 percent rise. Personal income rose 0.5 percent, above economists' forecasts of a 0.4 percent increase. Both gained 0.1 percent in November.
Hot Stocks Of The Day: (TNB, GCI, PMC, AMLN, PBY, PCL)
In corporate news, Thomas & Betts Corp. (NYSE:TNB) jumped 23.05 percent to end at $71.31 after the electrical parts maker agreed to be bought by Switzerland's ABB for $3.9 billion or $72 a share.
Gannett Co. Inc. (NYSE:GCI) retreated 6.9 percent to close at $14.17 after the media company posted a 33 percent decline in quarterly earnings, hit by lower revenue and charges. Earnings per share fell to 49 cents from 72 cents, while revenue fell 5 percent to $1.39 billion.
Plum Creek Timber Co. Inc. (NYSE:PCL) fell 2.0 percent to $39.25 in extended trading after the timberland owner guided first quarter and 2012 below consensus. The company expects first-quarter earnings between $0.20 and $0.25 per share and 2012 income between $1.00 and $1.25 per share. Analysts expect earnings of $0.26 for the first quarter and $1.34 for the full year 2012. It said Southern log prices fell when unusually dry weather in 2011 caused a temporary expansion of log supplies.
PharMerica Corp. (NYSE: PMC) plunged 11.8 percent to finish at $12.61. The Federal Trade Commission decided to sue to block Omnicare Inc. (NYSE: OCR)'s $457 million hostile bid of PharMerica. The agency said a combination of the two companies would raise the cost of Medicare prescription drug plans. OCR shares fell 0.57 percent.
United States Steel Corp. (NYSE:X) dropped 3.8 percent to end at $28.73.