Wall Street retreated as Greece scrambled to avoid a cash crunch and energy shares tumbled with the price of oil.
The S&P 500 (INDEXSP:.INX) slid 0.5 percent to 2,065.59 at 3:45 p.m. in New York. The 30-company Dow Jones Industrial Average (INDEXDJX:.DJI) fell 0.4 percent to 17,658.32, while the tech-heavy Nasdaq Composite (INDEXNASDAQ:.IXIC) retreated 0.5 percent to 4,983.99.
More than 61 percent of Greek citizens voted “no” in Sunday’s referendum on the terms for a bailout that included pension cuts, tax increases and other measures. The referendum was on whether to accept austerity terms demanded by the country’s creditors in exchange for further aid. The “no” vote appeared to increase the likelihood that Greece may eventually exit the eurozone.
The Alexis Tsipras-led government will now try to renegotiate a new bailout package with the lenders, but economists fear the lenders are unwilling to accept looser reforms.
Christine Lagarde, the International Monetary Fund chief, said the agency stands ready to assist Greece. The IMF is one of Greece’s three creditors, and the country missed a payment to it at the end of last month.
MOVERS:
Allergan (NYSE:AGN) fell 0.4 percent to $306.18 after the Botox maker said it has agreed to buy Oculeve, a maker of novel dry-eye disease treatments, for $125 million in cash. Oculeve specializes in treatments for dry eye disease.
Bank of America (NYSE:BAC) slipped 0.6 percent to $16.91 as financials fell across the globe following the result of the Greek referendum. Citigroup (NYSE:C) lost 0.6 percent to $55.01, while JPMorgan declined 0.4 percent to $67.20.
Humana (NYSE:HUM), a health insurer, rose 0.9 percent to $189.26 after Aetna (NYSE:AET) agreed to buy the rival health insurer for about $37 billion. Humana shareholders will receive $125 in cash and 0.8375 Aetna shares for each share they now hold. Aetna fell 6.7 percent to $117.00.
Guess (NYSE:GES) advanced 3.2 percent to $19.65. Piper Jaffray raised its rating on the apparel maker's stock to "neutral" from "underweight," based on improving trends in Europe and following recent meetings with management.
Harley-Davidson (NYSE:HOG) gained 0.6 percent to $56.35. Harley shares could rise 30 percent, according to Barron's, thanks to reduced costs and the motorcycle maker's buyback plan.
Chipotle Mexican Grill (NYSE:CMG) slipped 0.5 percent to $606.43. Chipotle shares could drop 15 percent to 20 percent, according to another Barron's article, due to flagging growth.
American Apparel (NYSEMKT:APP) sank 9.9 percent to $0.450 after unveiling plans to cut costs by closing underperforming stores and streamlining its workforce as the retailer looks to turn around its flagging business.
Dollar Tree (NASDAQ:DLTR) fell 0.5 percent to $79.40, reversing an earlier gain. The discount retailer has received U.S. Federal Trade Commission approval to acquire rival Family Dollar Stores after a nearly year-long review. The combined company will need to divest more than 300 stores. Dollar Tree said the deal was completed today.
COMMODITIES:
August gold tacked on 0.8 percent, to settle at $1,173.20 an ounce on Comex.
August crude dropped 7.7 percent to settle at $52.53 a barrel on the New York Mercantile Exchange.