While LeBas is skeptical any meaningful deal will be forged, there’s always the outside possibility there may be some watered-down agreement that extends tax cuts or delays spending cuts, he added. “I’ll believe it when I see it,” the strategist said.

President Barack Obama is meeting with Reid, McConnell, House Speaker John Boehner and House Democratic leader Nancy Pelosi to talk about a last-ditch effort to avoid the so-called fiscal cliff.

In economic news, pending home sales rose 1.7% in November, marking a third month of gains.

As bond prices rose, equities pulled back on Wall Street for the fifth session in a row.