NEW YORK – U.S. stocks fell in early trading Monday as concerns mount over Greece's debt woes. Major markets in Europe took a battering following news over the weekend that Greece's eurozone partners refused to extend the country's bailout program.
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KEEPING SCORE: The Standard & Poor's 500 index was down 13 points, or 0.6 percent, to 2,088 as of 10:08 a.m. Eastern. The Dow Jones industrial average fell 114 points, or 0.6 percent, to 17,832, and the Nasdaq composite fell 38 points, or 0.8 percent, to 5,042. The losses were broad but modest. Eight of the 10 industry sectors in the S&P 500 index traded lower.
COMMENT: "The initial market reaction is negative," said Dan Greenhaus, chief strategist at the brokerage BTIG, in a note to clients, "but as we've been saying, 2015 isn't 2011; we do not think this is Armageddon for the global economy."
GREECE: Tensions escalated over the weekend after Greek Prime Minister Alexis Tsipras said the country will hold a referendum on proposals made by the country's lenders. European officials refused to extend the country's bailout program, which expires Tuesday, and the European Central Bank capped its emergency support for the country's banks. That prompted the Greek government to announce limits on money withdrawals and transfers. Daily cash withdrawals are capped at 60 euros ($67) per account.
EUROPE'S RESPONSE: Germany's DAX fell 2.2 while France's CAC-40 sank 2.6 percent. The FTSE 100 index of leading British shares slipped 1.2 percent.
NO DEAL: Sysco said it scrapped a proposed $3.5 billion buyout of US Foods after the Federal Trade Commission blocked the deal to combine the two food-service companies. The FTC argued that the merger it would reduce competition by putting three-quarters of U.S. market for restaurant suppliers under the control of one company. Scuttling the deal means Sysco has to pay US Foods $300 million in breakup fees. Sysco's stock sank 52 cents, or 1.4 percent, to $37.85.
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CRUDE: Benchmark U.S. oil fell an even $1 to $58.63 a barrel on the New York Mercantile Exchange. Brent crude, a benchmark for international oils used by many U.S. refineries, fell $1.38 to $61.88 a barrel in London.
BONDS, DOLLARS: U.S. government bond prices jumped, sending the yield on the 10-year Treasury note down to 2.39 percent from 2.47 percent late Friday. The euro fell to $1.1147 from $1.1160.
ASIA'S DAY: The Nikkei 225 stock average in Tokyo slid 2.9 percent following news of a steep drop in industrial production. The Shanghai Composite Index fell 3.3 percent. Hong Kong's Hang Seng lost 2.6 percent despite a surprise interest rate cut from China's central bank. Sydney's S&P/ASX 200 lost 2.2 percent.