Growing doubts that Greece will be able to negotiate a deal with creditors to avoid defaulting on a looming debt payment weighed on U.S. stocks in midday trading Monday. The major indexes pared back some of their losses from earlier in the day as investors monitored the latest corporate deal news. Technology stocks were among the biggest decliners.
KEEPING SCORE: The Dow Jones industrial average was down 106 points, or 0.6 percent, to 17,791 at 11:44 a.m. Eastern Time. The Standard & Poor’s 500 index fell nine points, or 0.4 percent, to 2,084. The Nasdaq composite fell 27 points, or 0.5 percent, to 5,023.
THE QUOTE: “All eyes, including our own, are on Greece,” said Erik Davidson, chief investment officer for Wells Fargo Private Bank. “This is a grand experiment and if it were to go awry, it would certainly have implications.”
GREEK DRAMA: Weekend negotiations on Greece’s bailout terms produced no breakthroughs and Greek officials and creditors remained far apart as a deadline for a debt payment nears. Greek leaders want to get access to the final 7.2 billion euros ($8.2 billion) of their bailout program that’s needed to repay debts and avoid a possible default that could trigger an exit from the euro; the bailout package expires at the end of the month.
SEEKING TO OWN: Shares in iDreamSky Technology slumped 10 percent on news that the Chinese mobile games licensing company received an offer to be taken private by its Chairman and CEO Michael Xiangyu. The stock slid $1.50 to $13.06.
FOR SALE: AirMedia Group tumbled 15.3 percent following news that the Chinese advertising platforms company is selling a 75 percent stake in its advertising business for more than $338 million. The stock lost $1.08 to $6.18.
EXIT THE CHOPPER: United Technologies fell 2.1 percent after the company said it would get out of the helicopter business. The stock slid $2.50 to $115.10.
MANAGEMENT SHAKEUP: Lumber Liquidators slipped 1.7 percent after the troubled flooring retailer said it has fired its chief merchandising officer. The company didn’t say why it was firing the executive. Shares in the company fell 36 cents to $21.13.
BUILDER MERGER: Investors welcomed news late Sunday that California homebuilders Ryland Group and Standard Pacific have agreed to merge. Ryland rose $2.44, or 5.7 percent, to $45.23. Standard Pacific gained 53 cents, or 6.3 percent, to $8.89.
DRIVING THE DEAL: Dealertrack Technologies vaulted 57.5 percent on news that digital marketing company Cox Automotive is buying the maker of software used by automotive dealerships for about $4 billion. Shares in Dealertrack gained $22.90 to $62.75.
BRIMMING WITH CONFIDENCE: A gauge of U.S. homebuilders’ confidence in their sales prospects surged this month to the highest level since September. The National Association of Home Builders/Wells Fargo builder sentiment index climbed to 59 this month, up five points from 54 the May reading. The news sent most U.S. homebuilders higher.
EUROPEAN MARKETS: European stocks traded lower amid investor concerns over the lack of progress in Greece’s bailout negotiations. France’s CAC 40 shed 1.6 percent, while Germany’s DAX dropped 1.6 percent. Britain’s FTSE 100 lost 1 percent.
ASIA’S DAY: Moves by regulators to tighten up on margin financing sent Chinese shares lower. Hong Kong’s Hang Seng slumped 1.5 percent, while the Shanghai Composite Index in mainland China dropped 2 percent. Elsewhere in Asia, Japan’s benchmark Nikkei 225 index ended 0.1 percent lower and South Korea’s Kospi shed 0.5 percent. Australia’s S&P/ASX 200 edged 0.1 percent lower. Benchmarks in Southeast Asia also fell.
ENERGY: Benchmark U.S. crude oil continued to fall, losing 46 cents to $59.50 a barrel on the New York Mercantile Exchange. The contract hit a high for the year on Wednesday but has been falling since then.
BONDS: Nervous investors bought ultra-safe U.S. government bonds, pulling the yield on the 10-year Treasury note down to 2.35 percent from 2.39 percent late Friday.
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