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.
Subscribe to WSJ: http://online.wsj.com?mod=djnwires