US stocks retreat as Greece talks stall

GMT 21:18 2015 Wednesday ,24 June

Arab Today, arab today US stocks retreat as Greece talks stall

Nasdaq exchange
New York - AFP

US stocks followed European equity markets lower Wednesday, dropping sharply on signs of fresh problems in talks between Greece and its international creditors aimed at preventing a Greek debt default.

The Dow Jones Industrial Average dropped 178.00 (0.98 percent) to 17,966.07.

The broad-based S&P 500 fell 15.62 (0.74 percent) to 2,108.58, while the tech-rich Nasdaq Composite Index dropped 37.68 (0.73 percent) to 5,122.41.

The tone of talks between Greece and its international creditors sharpened with Greek Prime Minister Alexis Tsipras lashing out at their counterproposal to the government's reform plan.

Peter Cardillo, chief market economist at Rockwell Global Capital, said Greece was weighing on stocks, but added that some investors were selling off before the second quarter ends next Tuesday.

DuPont posted the biggest loss in the Dow, falling 3.4 percent after analysts at JPMorgan Chase raised questions about the ability of Chemours to pay its dividend when the performance chemicals unit is spun off from DuPont. Credit Suisse released a similar report on Monday. Chemours will begin trading on July 1.

Dow member Boeing gave up 1.0 percent after naming Dennis Muilenburg as chief executive, effective July 1, succeeding James McNerney, who will retire after holding the top spot for 10 years. The company is also reportedly slowing production of its 747-8 jet due to weak air cargo demand.

US agriculture and seed giant Monsanto fell 5.7 percent as it projected break-even results for the current quarter. The company also restated its hope to acquire Syngenta despite repeated rejections by the Swiss company.  

Streaming video company Netflix fell 0.4 percent after activist investor Carl Icahn announced he sold his remaining shares. The company also announced a seven-for-one stock split.

Dow member Goldman Sachs lost 1.8 percent and Citigroup fell 1.3 percent after both were downgraded by Deutsche Bank.

Food distributor Sysco advanced 3.1 percent after a federal judge blocked its proposed $3.5 billion takeover of US Foods due to opposition from antitrust regulators. Sysco said it was assessing its legal options, "including the merits of terminating the merger agreement."

Homebuilder Lennar advanced 4.2 percent after announcing second-quarter earnings of $183 million, up 33 percent from the year-ago period. Chief executive Stuart Miller reported "steady improvement" in the market for new homes.

Bond prices rose. The yield on the 10-year US Treasury fell to 2.38 percent from 2.41 percent Tuesday, while the 30-year declined to 3.16 percent from 3.20 percent. Bond prices and yields move inversely.

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