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Wall Street's early rally fizzles

Wall Street’s early rally fizzled Wednesday, as early optimism about a solution to Europe’s debt crisis faded.

According to the Associated Press:

“German Chancellor Angela Merkel hinted that the second Greek bailout package might have to be renegotiated. European leaders want banks and other private institutions to take bigger losses on Greek bonds. France and some European Central Bank officials oppose that idea.”

The Dow Jones industrial average had fallen into negative territory by mid-afternoon trading. Stock prices were sharply higher earlier in the day amid optimism that Europe would resolve its debt crisis.

However, shares of Amazon.com bucked the market trend and rose 4 percent after the Internet retailer announced a new tablet device called the Kindle Fire that will cost $199 and be a rival to Apple’s iPad.