By Anora Mahmudova and Sara Sjolin, MarketWatch

Trade deficit widens as strong dollar hurts export

U.S. stocks moved lower Tuesday as global equity investors nervousness heightened while Greece and its international creditors hold meetings that could determine the country's future in the eurozone.

The main indexes followed European markets which continued to decline amid uncertainty surrounding Greece debt talks.

The S&P 500 fell 12 points, or 0.6% at 2,055. The Dow Jones Industrial Average tumbled 118 points, or 0.7%, to 17,565. The Nasdaq Composite declined 52 points, or 1%, to 4,938.

Jitters among global investors could be spotted from falling government bond yields, which move inversely to bond prices, as investors sough the safety of government bonds. The yield on a 10-year Treasury note fell 9 basis points to 2.19%.

"Investors need to get use to a shock like Greece, but there are bigger issues that investors should be concerned about," said Bruce McCain, chief investment strategist at Key Private Bank.

"Precipitous falls in stocks prices in China, for example, is concerning and we are watching the situation there closely. Today's trade deficit shows that the stronger dollar is having an impact on exports and that is concerning for earnings," McCain said.

"When fundamentals are shaky and valuations are stretched, stock markets are vulnerable to shocks and usually it's unexpected ones that trigger large selloffs," he added.

Greece remained in the headlines on Tuesday as eurozone finance ministers convened for an emergency meeting in Brussels to discuss what's next for Greece after Sunday's referendum.

Greece's Tsipras-led government submitted a proposal on Tuesday (http://www.marketwatch.com/story/greece-arrives-at-eurogroup-meeting-without-proposal-ft-2015-07-07)with the same reform list that couldn't be discussed at the latest Eurogroup meeting before the referendum results.

Eurogroup President Jeroen Dijsselbloem said on arrival for the meeting that it is going to be difficult to reach an agreement (http://www.marketwatch.com/story/dijsselbloem-after-greek-no-vote-difficult-to-reach-debt-deal-2015-07-07-7911950) after the "no" vote.

Read: Greek debt crisis: Who's meeting and when on Tuesday (http://www.marketwatch.com/story/greek-debt-crisis-whos-meeting-and-when-on-tuesday-2015-07-07)

Greece's stock market will remain shut Tuesday and Wednesday (), alongside the extended closure of the country's banks, the Hellenic Capital Market Commission said. Meanwhile, Global X FTSE Greece 20 ETF (GREK) slid 3.3% after a 7% slide on Monday.

U.S. data: The U.S. trade deficit rose 2.9% in May, mostly because the U.S. exported fewer aircraft and other manufactured goods. The increase was smaller than expected by economists surveyed by MarketWatch. Market reaction to U.S. trade data released ahead of the opening bell was muted.

Job openings at U.S. workplaces rose to a record high of 5.36 million in May (data go back to the end of 2000) from 5.33 million in April, the U.S. Department of Labor reported Tuesday.

Oil rebound:Oil prices fell, after briefly ticking higher earlier in electronic trade, (http://www.marketwatch.com/story/crude-oil-struggles-to-recover-from-selloff-2015-07-07) following Monday's carnage, with the August contract for crude oil falling 1.1% to $51.94 a barrel. Brent crude for the same month inched 0.2% lower to $56.43 a barrel.

The contracts slid 7.7% and 6.3% (http://www.marketwatch.com/story/oil-tumbles-4-after-greek-voters-reject-creditors-reform-proposal-2015-07-06), respectively, on Monday. The selloff was driven by the turmoil in Greece and a potential Iranian nuclear deal, which may result in a flood of millions of barrels of oil, adding to global supplies.

Movers & shakers: Shares of Advanced Micro Devices Inc.(AMD) sank 17% after the chip maker cut its outlook late Monday (http://www.marketwatch.com/story/amd-warns-revenue-to-fall-short-on-weak-pc-demand-2015-07-06).

A. Schulman Inc.(SHLM) plunged 11% after the plastic manufacturer late Monday said it swung to a loss in the third quarter (http://www.marketwatch.com/story/a-schulman-swings-to-a-loss-cuts-forecast-2015-07-06-174854739).

Advance Auto Parts Inc.(AAP) edge higher, up 0.5% after S&P Dow Jones Indices said on Monday it would add the company's stock to the S&P 500 index (http://www.marketwatch.com/story/advance-autoparts-set-to-join-the-sp-2015-07-06).

MSC Industrial Direct Co.(MSM) shares rose 3% after the company said third-quarter profit fell less than expected.

For more on today's notable movers read Movers & Shakers column (http://www.marketwatch.com/story/amd-a-schulman-advanced-auto-parts-shares-in-focus-2015-07-07).

Other markets: Chinese stock indexes moved sharply lower (http://www.marketwatch.com/storyno-meta-for-guid), continuing the recent downbeat trend in the country's financial markets. Trading was halted in shares (http://www.marketwatch.com/story/over-20-of-listed-china-stocks-now-in-trading-halt-2015-07-07) in more than 200 mainland-traded China-traded companies during the selloff. The rest of Asian markets closed mixed. European stocks struggled for direction (http://www.marketwatch.com/storyno-meta-for-guid), with investors waiting for the latest word on Greece.

Gold fell 1.4% to $1,156.3, while the dollar rallied against most major currencies, rising 0.8% to 97.08.

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