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U.S. stocks sharply lower on Greek default fears, Fed minutes; Dow down 0.76%

Published 02/15/2012, 04:13 PM
Updated 02/15/2012, 04:14 PM
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Investing.com - U.S. stocks traded sharply lower Wednesday on renewed Greek default fears and mixed message from the Federal Reserve meeting minutes.
 
Near the close of U.S. trade, the Dow gave back 0.76%, the S&P 500 dropped 0.54% and the Nasdaq Composite fell 0.55%.
 
Risk appetite weakened after a report surfaced that EU officials are trying to delay Greece’s second bailout amid concerns that Greek leaders are not fully committed to implementing the required austerity measures.
 
Without a bailout, Greece faces a default when a EUR14.5 billion bond comes due on March 20.
 
However, euro zone finance ministers cancelled a meeting with Greece officials today to sign off on the second Greek bailout package, after failing to obtain assurances from Athens that the austerity measures will be implemented.
 
Ministers are expected to hold a teleconference ahead of the official meeting rescheduled for Monday.
 
In euro zone positive news, the head of China’s central bank stated that he believes the euro zone debt crisis can be solved. He vowed to become more involved in the debt crisis via facilities like the European Financial Stability Facility.
 
In addition, data showed that Germany’s economy fell less than expected 0.2% in the last three months of 2011, while France’s economy expanded 0.2% and Italy’s shrank by 0.7%.
 
Meanwhile in the United States, the Fed’s policy meeting minutes revealed that policy makers are not in agreement concerning additional monetary easing. These mixed messages added to the bearish session.
 
Apple gave back as much as 1.5% during the session on a patent dispute with Amazon China.
 
Zynga plunged 15% as the Facebook game designer’s product development costs weighed on profits.
 
In bullish news, Dean Foods soared 11% on lower raw milk costs.
 
Cable operator Comcast advanced 5% after reporting better than expected profits and an increased dividend.
 
After the close of European trade, the EURO STOXX 50 gained 0.23%, France's CAC 40 added 0.44%, while Germany's DAX advanced 0.44%. Meanwhile, in the U.K. the FTSE 100 slipped lower by 0.13%.



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