Traders Todd Ingrilli, left, and Jonathan Niles work on the floor of the New York Stock Exchange Monday, June 18, 2012. U.S. stocks are falling after the opening bell as Europe's debt crisis roils markets despite the victory of a pro-Europe party in Greek elections. (AP Photo/Richard Drew)
Traders Todd Ingrilli, left, and Jonathan Niles work on the floor of the New York Stock Exchange Monday, June 18, 2012. U.S. stocks are falling after the opening bell as Europe's debt crisis roils markets despite the victory of a pro-Europe party in Greek elections. (AP Photo/Richard Drew)
Specialist Patrick King works at his post on the floor of the New York Stock Exchange Monday, June 18, 2012. U.S. stocks are falling after the opening bell as Europe's debt crisis roils markets despite the victory of a pro-Europe party in Greek elections. (AP Photo/Richard Drew)
Specialist Meric Greenbaum, center, wotks at his post on the floor of the New York Stock Exchange Monday, June 18, 2012. U.S. stocks are falling after the opening bell as Europe's debt crisis roils markets despite the victory of a pro-Europe party in Greek elections. (AP Photo/Richard Drew)
Crisis-weary investors scoffed Monday at what had appeared to be a hopeful turn in the European debt crisis: a victory for pro-Europe parties in a Greek election. U.S. stocks were little changed, and borrowing costs for Spain surged to alarming levels.
Investors appeared fed up with policy makers' inability to resolve a crisis that has bedeviled markets for more than three years. Leaders of the most developed countries are meeting in Mexico to discuss the crisis and the slowing global economy.
U.S. indexes opened lower then drifted between modest gains and losses. Homebuilders rose after a measure of confidence among U.S. builders rose to a five-year high.
Spanish borrowing rates spiked Monday above levels that forced other countries to take bailouts, a sign that bond investors fear Spain will default on its debts.
The Dow Jones industrial average fell 31 points to 12,735 shortly after midday. Hewlett-Packard fell 62 cents, or 2.8 percent, to $21.02. It was the biggest percentage decline among the 30 stocks in the Dow.
The Nasdaq Composite index rose nine points to 2,881. It was lifted by Apple, its biggest component, which rose $8.06, or 1.4 percent, to $582.19.
Rival tech titan Microsoft will make a "major" announcement after the market closes. Many expect it to introduce a tablet computer that would compete with Apple's market-dominating iPad.
The Standard & Poor's 500 index fell two to 1,341.
On Sunday, Greek voters elected a party that wants to continue a program of international bailout loans that require painful budget cuts. Traders had fretted for weeks that a radical leftist party would prevail and reject Europe's unpopular bailout plan.
The next step, traders feared, would be Greece's dropping the shared currency. Anxiety over a Greek exit was so pronounced that many expected bank runs on Monday if political anti-bailout parties had won the election.
Yet Greece's situation remains precarious. The anti-bailout party got a big chunk of the vote. There's also no guarantee that the winners will be able to form a government. Elections a month earlier had not produced a governing coalition, leading to Sunday's do-over.
Many had expected stocks and other risky investments to rally on relief that the conservative party won. But the broader scope of Europe's financial burdens soon overshadowed whatever breathing room the election provided.
Safe investments rose and riskier ones fell as traders continued their long vigil for a more permanent solution in Europe. Leaders there are considering a centralized system of bank regulation and deposit insurance to complement proposals of closer economic coordination.
Attention shifted Monday toward Spain and Italy, both of which will require international help if they can't convince bond investors that their finances are sound.
Benchmark stock indexes plunged 3 percent in Spain and 2.9 percent in Italy. Stocks in Germany and the U.K. edged slightly higher.
The yield on the 10-year Treasury note fell to 1.59 percent from 1.63 percent earlier Monday as demand increased for low-risk assets.
The yield on Spanish 10-year bonds jumped to 7.15 percent, the highest since Spain joined the euro. Only a week ago, Europe unveiled a massive bailout of Spain's banks intended to reassure investors about the nation's finances.
Greece, Ireland and Portugal needed bailouts after their borrowing costs rose above 7 percent. It looks like tiny Cyprus will need a bailout as well.
The ISE Homebuilders index rose 28 cents, or 2.9 percent, to $9.92. Lennar, PulteGroup, D.R. Horton and Toll Brothers all rose strongly.
Giant military contractor SAIC fell 47 cents, or 3.8 percent, to $11.77. The Defense Department said Friday that SAIC had lost its biggest contract to Lockheed Martin, a $4.6 billion deal to run the department's global network.
Energy prices, which are sensitive to investors' expectations of future economic growth, fell. Benchmark crude for July delivery slid $1 to $83.03 per barrel in electronic trading on the New York Mercantile Exchange.
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Daniel Wagner can be reached at www.twitter.com/wagnerreports.
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