US stocks dip on worries about Greece
This July 15, 2013, file photo shows the American flag and Wall Street street sign outside the New York Stock Exchange in New York. Wall Street stocks dipped Thursday, May 28, 2015, following leading eurozone equity markets lower on worries about a potential Greek exit from the currency bloc. AP PHOTO/MARK LENNIHAN
NEW YORK–Wall Street stocks dipped Thursday, following leading eurozone equity markets lower on worries about a potential Greek exit from the currency bloc.
The Dow Jones Industrial Average dropped 36.87 points (0.20 percent) to 18,126.12.
The broad-based S&P 500 shed 2.69 (0.13 percent) at 2,120.79, while the tech-rich Nasdaq Composite Index lost 8.62 (0.17 percent) at 5,097.98, retreating from Wednesday’s record.
Frankfurt’s DAX 30 index fell 0.79 percent and the CAC 40 in Paris lost 0.86 percent as the tense standoff between heavily indebted Greece and its creditors hung over a meeting of finance ministers from the Group of Seven leading industrialized nations in Germany.
International Monetary Fund chief Christine Lagarde, who was attending the G7 meeting, reportedly warned of the potential for a Greek exit of the 19-nation eurozone and said such a scenario would not be “a walk in the park” for the single-currency area.
Analysts also noted that the Shanghai Composite Index fell 6.5 percent on worries about tighter margin requirements in Chinese markets.
Broadcom lost 1.6 percent following news it would be acquired by fellow chipmaker Singapore-based Avago Technologies for $37 billion. Broadcom had jumped 21.5 percent on Wednesday as news broke of the impending deal.
Avago advanced 0.6 percent on the deal, which will create a leader in the surging market for mobile devices like smartphones and tablets.
Big-box retailer Costco Wholesale fell 0.8 percent as revenues for the quarter ending May 10 came in at $25.52 billion, below the $26.63 billion forecast by analysts.
Cybersecurity company Palo Alto Networks jumped 3.6 percent after forecasting sales of $252-256 million in the current quarter, more than the $247.67 million projected by analysts.
Equipment-rental company United Rentals tumbled 9.1 percent following comments by chief financial officer Bill Plummer that May business was “a bit softer” than the company previously projected.
Bond prices fell. The yield on the 10-year US Treasury rose to 2.14 percent from 2.13 percent Wednesday, while the 30-year advanced to 2.89 percent from 2.87 percent. Bond prices and yields move inversely.
