Stocks Fall on Greek Debt Talks

Stocks Fall on Greek Debt Talks

New York — U.S. stocks fell Friday, with the Standard & Poor’s 500 index little changed for the week, amid growing concern Greece won’t reach a debt deal with its creditors in time to avoid default.

Energy shares retreated 1.2 percent as oil declined for a second day. Cisco Systems and Intel lost at least 1.1 percent to pace a slide among technology companies. Eli Lilly dropped 2.8 percent to lead health-care companies lower. Airlines climbed amid the decline in crude. Citrix Systems extended its rally to a third day.

The S&P 500 index lost 0.7 percent to 2,094.11, with the gauge up less than 0.1 percent for the week. The Dow Jones industrial average fell 140.53 points, or 0.8 percent, to 17,898.84. The Nasdaq composite index slid 0.6 percent. About 5.1 billion shares changed hands on U.S. exchanges Friday, 19 percent below the three-month average and the second-lowest this year.

“Every time we think we’re close to a deal with Greece there’s some kind of monkey wrench,” said Karyn Cavanaugh, the New York-based senior market strategist at Voya Investment Management. Voya oversees $215 billion. “The more opaque the picture becomes with Greece the more people opine on what the potential repercussions would be and it’s a little touch and go.”

The S&P 500 all but erased a weekly gain as sentiment soured on the potential for an agreement between Greece and its creditors. Optimism for a deal earlier in the week, coupled with improving economic data had helped push the benchmark toward its best week since April.

After four months going around in circles, German Chancellor Angela Merkel urged Greece to accept the framework for financial aid as euro-area officials demanded a proposal for stabilizing the country’s debt by the end of Friday.

Federal Reserve policy makers meet this week to discuss the potential timing of an interest-rate increase. Recent data have helped bolster the case for higher rates this year, and officials will issue new forecasts for the economy as well as the path of the federal funds rate. Chair Janet Yellen is scheduled to give a news conference after the meeting.

Data Friday showed wholesale prices rose in May as the biggest jump in fuel costs in at least five years swamped muted advances in other categories. Costs dropped 1.1 percent over the past 12 months, in line with estimates.

A separate report showed consumer confidence rose more than forecast in June as Americans were the most upbeat about their wage prospects in seven years. According to data Thursday, consumers were more willing to spend, as increased retail sales reflected broad-based gains from car dealers to clothing outlets to department stores.

All 10 main groups in the S&P 500 dropped Friday, with energy falling the most as crude prices sank. Exxon Mobil and Chevron lost more than 1.2 percent. Southwestern Energy and Transocean lost at least 2 percent.

Coal miner Consol Energy declined 4.1 percent to its lowest in more than six years. Peabody Energy fell another 9 percent to an all-time low, after losing 13 percent Thursday.

Eli Lilly dropped 2.8 percent, after gaining 4.1 percent yesterday, as the health-care group lost 1.1 percent for the first decline in four days. Merck sank 1.8 percent to a six-week low. The Nasdaq biotechnology index fell 1.2 percent as Celgene and Amgen slumped more than 1.1 percent.

Semiconductors retreated for the ninth time in 10 sessions to weigh on the technology group in the benchmark index. Intel lost 1.7 percent to snap a two-day winning streak after Goldman Sachs Group Inc. said it sees heightened risk that Intel management may lower its quarterly earnings forecast before its report. Analog Devices and Nvidia slid at least 1.4 percent.

LeapFrog Enterprises Inc. plummeted 26 percent to a six-year low after the maker of children’s electronics posted a wider loss than projected, hurt by sluggish demand for tablets and other products.

Keurig Green Mountain slipped 0.6 percent, earlier down as much as 4.1 percent, after UBS downgraded the shares to neutral from buy.

The Chicago Board Options Exchange volatility index rose 7.2 percent to 13.78, after reaching a three-week low Thursday. The gauge had its first weekly drop in three weeks.

Author: Oliver Renick And Jennifer Kaplan Bloomberg News

Share This Post On

Our Newspaper Family Includes:

Stay up to date on business happenings in the Upper Valley and beyond with the Enterprise newsletter. Delivered to your inbox once per week!

You have Successfully Subscribed!