US stock indexes move higher in morning trading, while China's market plunges after long rally

EnergyAssociated Press

U.S. stocks were mostly higher in morning trading Friday as negotiators continued to work toward a solution to Greece's debt problems. Chinese stocks plunged 7 percent as fears spread that a yearlong bull rally there has become overheated. China's benchmark index is still up more than double over the past year.

KEEPING SCORE: The Dow Jones industrial average rose 99 points, or 0.6 percent, to 17,989 as of 11:23 a.m. Eastern. The Standard & Poor's 500 index rose two points, or 0.1 percent, to 2,104 and the Nasdaq composite fell five points, or 0.1 percent, to 5,107.

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GREEK TALKS: Global investors are watching closely as Greek debt talks go down to the wire. On Thursday, a key meeting of eurozone finance ministers on Greece's rescue package broke up without an agreement. The 19 ministers are due to meet again Saturday.

Greece needs a deal to pay 1.6 billion euros ($1.8 billion) to the International Monetary Fund due Tuesday. Failing to do so would put the country on a path toward default and an exit from the euro.

"While these deadlines can quite often be taken with a pinch of salt, Greece has literally run out of time on this occasion," said Craig Erlam, senior market analyst at OANDA.

JUST DO IT: Nike shares rose $4.44, or 4 percent, to $109.66 after the athletic shoe and apparel maker posted quarterly results that beat analysts' expectations.

SHANGHAI SLUMP: While Greece has been the main driver in financial markets recent weeks, worries over China have risen up the list of concerns. On Friday, Chinese stocks plunged more than 7 percent. The Shanghai composite closed at 4,391.91. It reached 5,300 just two weeks ago.

"Although I continue to be optimistic about the longer-term trend of the China markets, it's clear that we are in a sharp correction phase," said Bernard Aw of IG Markets in Singapore.

ENERGY: Benchmark U.S. crude oil fell 73 cents to $58.95 a barrel on the New York Mercantile Exchange. Brent crude, a benchmark for international oils used by many U.S. refineries, fell 50 cents to $62.70 in London.

BONDS, CURRENCIES: U.S. government bond prices fell. The yield on the 10-year Treasury note rose to 2.46 percent from 2.39 percent late Thursday. In currency trading, the euro fell to $1.1146 while the dollar was rose to 123.95 Japanese yen.