If you asked a hundred traders what would be the best thing that could come out the the EU summit tomorrow – I know what wouldn’t be on it. A flash across the wires is reporting that participants have agreed to reexamine the issue in March of 2012. An EU diplomat reportedly said that the EU will reexamine the ceiling of the ESM bailout fund in March of 2012. Also treaty changes will be discussed on the same date due to the failure to garner full backing.

That translates to either the summit is one epic failure or the S&P is bluffing and won’t downgrade. I’m going with failure on this one. The sovereign debt contagion is spreading into the core and needs to be addressed sooner rather than later. But then again who knows. Maybe Merkozy can pull a trillion euros out of the hat tomorrow.

Asian markets are mostly negative due to the ongoing EU concern. China did release promising inflation numbers as their CPI dropped 1.3%. Wholesale prices saw a steeper decline. With inflationary concerns easing this gives the central Chinese bank more room for monetary easing. In the midterm this should work to form up the Asian markets thanks to falling food and commodity prices.

In the US, markets ended the day down substantially over the growing EU concern. The Dow shed nearly 200 points in trading today, while the Nasdaq gave back 53 points and the S&P finished off nearly 27.

It is increasingly obvious that the recent rally in equities is subject to a steep sell-off if the EU crisis is not resolved in such a way that the markets have faith in it.

Top gainers in after-hours include Flow International Corporation (NASDAQ:FLOW), U.S. Energy Corp. (NASDAQ:USEG), Boyd Gaming Corp. (NYSE:BYD), Calix, Inc. (NYSE:CALX) and Graphic Packaging Holding Company (NYSE:GPK)

Flow International Corporation (NASDAQ:FLOW) was up 27.27% in after hours trading at $3.08. FLOW posted a better than expected profit for its fiscal second quarter. The company eraned $2.8 million, or $0.06 a share. Analysts had expected profit of $0.01 per share. Flow International has a market cap of 115.48 million.

U.S. Energy Corp. (NASDAQ:USEG) closed the day down 8.28%, but jumped more than 9% in after hours trading. USEG traded 130 thousand shares today, just short of its daily average volume of 170 thousand shares. The company has a market cap of 72.55 million.

Boyd Gaming Corp. (NYSE:BYD) closed Thursday down 7.91% at $6.17. In after hours trading however it jumped 8.59% at $6.70. BYD traded 1.2 million shares on Thursday, slightly below its daily average of 1.5 million shares. Boyd Gaming has a market cap of 532.58 million.

Calix Inc. (NYSE:CALX) finished the day down nearly 7%, but rose 7.5% in after hours trading to $7.21. CALX traded 558 thousand shares today, about 60 thousand more shares than it trades on average. Calix has a market cap of 317.35 million.

Graphic Packaging Holding Company (NYSE:GPK) closed Thursday down 4.46% at $4.07. GPK jumped up 8.11% in after hours trading to $4.40. GPK traded 539 thousand shares today and trades 805 thousand shares a day on average.