US stocks ended in the red Wednesday amid renewed concerns that Greece was veering toward default after a debt bailout hit fresh turbulence.
The Dow Jones Industrial Average fell 97.33 points (0.76 per cent) to finish at 12,780.95.
The broad-based S&P 500 dropped 7.27 points (0.54 per cent) to 1,343.23, while the Nasdaq Composite shed 16.0 points (0.55 per cent) to 2,915.83.
After opening with modest gains helped by positive US manufacturing data, stocks turned mixed but then succumbed to selling amid the revived worries about a Greek default.
“The flare-up in uneasiness toward the troubled nation comes courtesy of reports that eurozone finance ministers, (who) already cancelled a meeting, are exploring ways to delay the next wave of bailout aide to debt-laden Greece, while still avoiding an immediate default,” Charles Schwab analysts said.
Lowered hopes for a new US stimulus program also helped depress stocks, analysts said.
The Federal Reserve released the minutes of its last policy board meeting that suggested a low level of enthusiasm for more stimulus.
“The afternoon release of the FOMC minutes cooled markets even more as the minutes showed little enthusiasm for another round of quantitative easing,” said Paul Ausick at 24/7WallSt.com.
Bank of America was the Dow’s biggest decliner, losing 2.5 per cent.
Among stocks in focus, Kellogg Company said it will buy Procter & Gamble’s Pringles potato chip business for $2.7 billion as the cereal maker seeks to extend its global snacks reach.
The announcement came after P&G and Diamond Foods mutually agreed to end Diamond’s plan to buy Pringles.
Kellogg shares soared 5.1 per cent; Diamond jumped 5.2 per cent and P&G edged up 0.1 per cent.
Cable and media giant Comcast surged 4.7 per cent after posting solid earnings gains and an upbeat outlook.
Facebook game star Zynga dived 17.8 per cent after turning in a $435 million loss for the fourth quarter, with rising costs exacerbated by a huge employee stock compensation program.
Bond prices were flat.
The yield on the 10-year Treasury was unchanged from 1.92 per cent on Tuesday, while the 30-year yield held steady at 3.07 per cent.
Bond prices and yields move in opposite directions.
