Global stocks fall on Greece talks

US stocks edged lower on Tuesday, ending a five-day rally for the S&P 500, as talks to resolve Greece's debt crisis hit a snag and earnings from a number of blue chips disappointed investors.

The Dow Jones industrial average finished down 33.07 points, or 0.26 percent, at 12,675.75. The Standard & Poor's 500 Index was down 1.37 points, or 0.10 percent, at 1,314.63. The Nasdaq Composite Index rose 2.47 points, or 0.09 percent, at 2,786.64.

European shares fell as fears over the prospect of a disorderly default of Greece weighed on sentiment, while new proof surfaced that the global economy is not in good shape.

The FTSEurofirst 300 index of top European shares fell 0.4 percent to 1,043.79 points. The STOXX Europe 600 banking index dropped 1 percent.

Japan's Nikkei share average, on the other hand, hit its highest closing level in nearly three months on expectations that a Greek debt swap deal will still be reached even after European finance ministers rejected an offer by Greece's private creditors.

The Nikkei average closed 0.2 percent higher at 8,785.33, unscathed by news that euro zone finance ministers took issue with the average coupon on new bonds offered by private Greek bondholders, effectively raising the stakes of the negotiations and the risk of a messy Greek default.

The Nikkei is up 3.9 percent so far in January. If this month were to finish with the current gains, it would be the best January performance since 1999.he broader Topix added 0.1 percent to 757.40 today.