Stalled fiscal cliff talks weigh on Wall St US equity markets were lower in a holiday shortened trading on Monday, as hopes of resolution to the fiscal cliff of automatic spending cuts and tax increases before the year end faded. There was little hope even for a partial fix as both parties blamed one another for stalled negotiations. John Boehner, the Republican speaker of the House, suffered defeat last Friday when his proposed "Plan B" did not garner enough support within his party. President Obama's concessions over tax increases were rejected by the Republicans last week. Both parties agreed to continue negotiations this week. Analysts at PNC Financial Services were optimistic about the prospects of a budget deal, however. We still believe a deal will get done to avoid the majority of the fiscal drag, but it may not happen until early in the new year. Nevertheless, we continue to expect spates of financial market volatility through the negotiation process," they wrote in a note. While trading volumes were low with most investors away on holidays, volatility rose markedly. The CBOE Vix index, which measures implied volatility on the S&P 500 index, rose 3.8 per cent, having gained in the past four sessions. The benchmark S&P 500 index was 0.3 per cent lower at 1,426.13 with most major sectors in negative territory. The Dow Jones Industrial Average fell 0.3 per cent to 13,156.88 and the technology-heavy Nasdaq Composite dropped 0.2 per cent to 3,014. Defing the market, some stocks performed well after a flurry of upgrades from analysts. Tripadvisor, an online travel booking company, rose after analysts at Needham & Company raised their share price target from $38 to $51. The shares jumped 4 per cent at the open but gave up most of their gains to trade 1 per cent higher at $42.40. JC Penney, the troubled department store group, jumped 4 per cent to $20.40 after some analysts issued positive reports about store traffic and business in the crucial Christmas shopping season. Shares in Yum! Brands, which owns fast food restaurant chains such as KFC and Pizza Hut, added 1.6 per cent to $64.89 as analysts at Bank of America reaffirmed their "buy" rating with a share price target of $76. Among heavy fallers was First Solar, dropping 2.4 per cent to $30.18. The manufacturer of solar modules has lost more than 10 per cent since the beginning of the year. Advanced Micro Devices, manufacturer of microchips, was among losers on Monday, shedding 2.9 per cent to $2.52. The stock has lost more than half its market value since January.