U.S. stocks declined today, but pared their steepest losses by the afternoon, following the latest setback in bailout talks between Greece and its European creditors.
The S&P 500 (INDEXSP:.INX) slipped 0.4 percent to 2,086.10 AT 3:47 p.m. in New York. The 30-company Dow Jones Industrial Average (INDEXDJX:.DJI) slipped 0.5 percent to 17,807.09. The tech-heavy Nasdaq 100 (INDEXNASDAQ:NDX) fell 0.4 percent to 4,437.20.
The slump followed a breakdown in talks between Greece and its creditors over the weekend. European officials dismissed the Greek government’s latest proposals Sunday, calling them “vague and repetitive.” The lack of progress in negotiations has rattled investors and raised fears of a default on Greece’s debt and a possible exit from the currency bloc.
Investors were also nervous ahead of the Federal Reserve's two-day policy meeting starting tomorrow. Upbeat consumer sentiment and other data last week added to views the economy is regaining momentum and could encourage the Fed to raise interest rates soon as September.
Investors will focus on any changes in Fed Chair Janet Yellen's language in a post-meeting news conference.
Easy monetary policy has driven borrowing costs lower and helped stocks and bond prices to record highs in recent years. The last time U.S. stocks saw a 10 percent correction was in May 2011, Reuters reported, citing to RBC Capital Markets.
DATA:
A New York-area manufacturing survey came in well below expectations, with the index dropping to a negative 2.0 in June, while economists polled by MarketWatch expected a reading of 5.7. Industrial production in May also dipped.
U.S. industrial production unexpectedly fell in May, mainly because of a strong dollar and a drop in spending by energy companies.
However, U.S. homebuilder sentiment rose more than expected in June, hitting its highest level since September.
MOVERS:
Standard Pacific (NYSE:SPF) rose 6 percent to $8.85 after the Irvine, California-based company and Ryland Group said they would merge to become the fourth-largest homebuilder in the United States. Ryland (NYSE:RYL) rose 5.3 percent to $45.05.
United Technologies (NYSE:UTX) fell 2.5 percent to $114.66 after the company said it plans to sell or spin off helicopter maker Sikorsky Aircraft by the end of the third quarter this year after a strategic review of the business.
Boeing (NYSE:BA) skidded 0.5 percent to $142.15. Boeing said it is in talks with potential buyers for its five remaining C-17 cargo planes. Boeing expects to sign deals before the fourth quarter.
Nike (NYSE:NKE) fell 0.4 percent to $103.42 after the Wall Street Journal reported that U.S. authorities are examining payments made by the company under a 1996 soccer sponsorship deal with Brazil for possible evidence of wrongdoing by the company or others.
Twitter (NYSE:TWTR) fell 3.4 percent to $34.67. Prince Alwaleed bin Talal, a major investor in Twitter, issued a statement, saying he would support chairman Jack Dorsey—soon to become interim CEO—if he wanted to take the job on a permanent basis. Earlier, the Financial Times had reported the prince was against the idea of Dorsey being the permanent CEO.
American Apparel (NYSEMKT:APP) retreated 2.5 percent to $0.540 after saying that David Danziger, an auditor who had sat on the retailer’s board since 2011, resigned and has been replaced by chief executive officer Paula Schneider.
Drugstore chain CVS Health (NYSE:CVS) added 0.4 percent to $102.64 after the pharmacy company said it plans to buy the pharmacy and clinic businesses of Target (NYSE:TGT) for $1.9 billion. Target rose 1.2 percent to $80.42.
Alibaba Group (NYSE:BABA) fell 0.6 percent to $86.11 after the technology company said it will launch an online video streaming service in China in about two months, hoping to emulate the U.S.'s Netflix (NASDAQ:NFLX) and HBO. Netflix fell 1.2 percent to $652.86.
Game publisher iDreamSky Technology (NASDAQ:DSKY) slumped 11.3 percent to $12.99 after saying said its chairman and chief executive offered to take the company private for $14 per American depositary receipt, less than a year after the company went public.
Bluebird Bio (NASDAQ:BLUE) climbed 1.1 percent to $188.75 after saying it saw positive results in the first patient infused with its experimental drug for severe sickle cell disease.
COMMODITIES:
Gold futures for August delivery tacked on 0.6 percent to settle at $1,185.80 an ounce on Comex.
July crude fell 0.8 percent to $59.48 a barrel, following a gain of 1.4 percent last week.