Market report

Markets dip on lull in Greek debt talks

NEW YORK -- Fear that Greece will default and abandon the euro rattled global financial markets Friday.

News that negotiations between Greece and its international lenders are making little progress sent European stock markets down sharply Friday, and the selling spread across the Atlantic. By the close of U.S. trading, stocks across industries were lower, with four of five stocks down.

For all the turmoil in the markets, major U.S. stock indexes closed the day with relatively modest losses. At one point, the Dow Jones industrial average was down 357, heading for its worst day in six months. The Dow regained some of those losses toward the close of trading, ending down 279.47 to 17,826.30, a drop of 1.5 percent.

That was only the worst drop since March 25. The Dow has struggled since reaching a record high on March 2 and is now back where it started the year.

The Standard & Poor's 500 index lost 23.81 points, or 1.1 percent, to 2,081.18. The Nasdaq composite fell 75.98 points, or 1.5 percent, to 4,931.81.

In the U.S., disappointing first-quarter financial results from several big companies fed the selling. After American Express reported revenue that fell short of expectations, investors drove down its stock more than 4 percent.

"The day of reckoning" for Greece is fast approaching, said Uri Landesman, president of investment fund Platinum Partners. "People thought everyone would work it out, but if no one caves, there won't be a deal."

Greece and its creditors are still struggling to find a deal that can keep the country from defaulting on its debt. The argument is over what reforms Greece should make in return for loans. Many think Greece will struggle to make payments to the International Monetary Fund next month if it fails to reach a deal.

In corporate news, Honeywell International fell $2.22, or 2 percent, to $101.70 after reporting disappointing first-quarter results. The industrial conglomerate posted earnings per share that beat estimates, but its revenue fell short.

Advanced Micro Devices plunged 10 percent after reporting a larger loss than investors had expected after the market closed on Thursday. The chipmaker's stock fell 29 cents to $2.58.

News out of China also weighed on investors. Chinese financial regulators issued warnings about that country's soaring stock market. Regulators said they will tighten rules on borrowing to buy stocks. Shanghai's stock market has more than doubled in the past year.

"People are thinking maybe the party is over in China," said Doug Cote, chief market strategist for Voya Investment Management. "China recognizes that it could be creating a bubble, and now it wants to slow down. It's trying to rein back risk."

Germany's DAX index dropped 2.6 percent. France's CAC 40 shed 1.6 percent and Britain's FTSE 100 fell 0.9 percent.

The price of oil fell nearly 3 percent Friday on a slowdown in the reduction of working drilling rigs, but finished the week sharply higher.

Benchmark U.S. crude fell 97 cents to close at $55.74 a barrel in New York. U.S. crude finished 8 percent higher for the week, however. Brent crude fell 53 cents to close at $63.45 a barrel in London.

Business on 04/18/2015

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