US STOCKS-Wall Street falls on caution after rally

Mon Nov 26, 2012 11:30am EST
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* Euro zone finance ministers begin third attempt at Greek deal

* Investors take profits after last week's strong finish

* Qatar cashes in its warrants in Barclays, causing shares to dip

* Knight Capital in talks for unit sale; shares jump

* Indexes off: Dow 0.8 pct; S&P 0.7 pct; Nasdaq 0.4 pct

By Edward Krudy

NEW YORK, Nov 26 (Reuters) - U.S. stocks eased on Monday after a rebound rally pushed the S&P 500 to its best week in more than five months last week and as investors focused on talks to release aid to Greece and negotiations in Washington to avoid the U.S. "fiscal cliff."

Major indexes ended last week with gains of 3 percent to 4 percent, recovering some of their losses following an 8 percent correction since September. The Dow and S&P 500 both closed above key technical levels for the first time since Nov. 6, which could provide additional support. The Dow ended above 13,000, while the S&P broke above 1,400.

Investors continued to chew over two of the greatest overhangs for markets. Euro zone finance ministers and the IMF will seek to unfreeze the second bailout package for Greece on Monday. At the same time, U.S. lawmakers have made little progress in the past 10 days toward a compromise to avoid the harsh tax increases and government spending cuts.   Continued...