U.S. shares mixed on European worries; Dow opens down 0.12%

Investing.com - U.S. stocks traded mixed at the open Friday, as investors worried over euro zone budget cutting and growth strategies,
 
Near the open of U.S. trade, the Dow gave back 0.12%, the S&P 500 advanced 0.62% and the Nasdaq fell 0.04%.
 
German retail sales surprisingly declined in January as climbing oil prices spurred inflation fears.
 
Meanwhile, Spain raised its budget deficit target for 2012, violating its promise to its European partners adding to euro zone fears.
 
Spurring the euro zone worries,  the International Swaps and Derivatives Association is considering triggering credit default swap payouts due to collective action clauses.
 
Despite ruling the European Central Bank’s exchange for Greek bonds for new securities, exempt from private investor losses, did not trigger the CDS payouts on Thursday.
 
Policy makers including former ECB President Jean Claude Trichet have spoken out against paying the swap contracts due to worries that traders would be encouraged to bet against failing nations thus worsen the euro zone crisis.
 
In economic news, euro zone producer price inflation climbed more than expected to a seasonally adjusted 0.7% last month from -0.2% the preceding month.
 
Analysts had forecast euro zone PPI to only rise to 0.5% last month.
However, at the European Leaders summit in Brussels, euro zone heads declared a turning point in the debt crisis.
 
The leaders agreed that given the Greek aid package being started and a potential euro zone recession, its time to focus on a pro growth agenda despite the deficit control treaty signed today.
 
EU President Herman Van Rompuy stated, “Targets on deficits are intermediate targets, no aim in itself. The restoration of confidence in the future of the euro zone  will lead to economic growth. That is our ultimate objective.”
 
Even German Chancellor, Angela Merkel, changed her stance on slowing down payment for the EUR500 billion permanent rescue fund to speeding up the payments at the summit.
 
Known as the European Financial Stability Facility, the permanent fund will go into operation in July.
 
Alaska Communications Systems Group gained 5.8% after beating analyst estimates for fourth quarter earnings.
 
Sarah Lee Corp climbed 4.7% upon filing to spinoff its international coffee company.
 
Shutterfly, the online photo service, soared 15% after agreeing to purchase competitor Kodak Gallery for USD23.8 million.
 
In bearish news, SciClone Pharmaceuticals gave back 4.4% after stating it will stop developing its oral mucositis drug since clinical study goals have not been met.
 
In mid European trade, shares were mostly flat with the EURO STOXX 50 slipped 0.01%, France's CAC 40 advanced 0.16%, while Germany’s DAX fell 0.10%.  Meanwhile, in the U.K. the FTSE 100 gave back 0.16%.