Wall Street Trims Losses, Still Lower on Greece Negotiations

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Wall Street Trims Losses, Still Lower on Greece Negotiations

US stocks pared early morning losses but still remained lower as Investors brushed off news that Greece resoundingly voted against austerity measures by the European Union in their cash for reforms bailout deal.

The Dow Jones Industrial Average most recently declined by 77.52 points or 0.44% at 17,682 points after opening more than 152 points down.

The S&P 500 Index most recently traded 10.89 points or 0.5% lower at 2065.89 points after opening more than 18 points lower. Eight of the benchmark index’s ten main sectors opened lower led by energy and infrastructure.

The technology heavy Nasdaq Composite was most recently declined by 27.58 points or 0.55% at 4981.74 points after partially erasing early morning losses of more than 40 points.

“After five years, you have to believe a measure of the news from Greece is already built into the market,” said Bruce Bittles, chief investment strategist at Milwaukee-based Robert W. Baird & Co., which oversees $110 billion, told Bloomberg by phone.

“How many times can you be concerned about the same news? I think it loses it’s effectiveness over the near term.”

More than 61% of Greeks voted No on Sunday in a referendum on whether or not to accept the terms proposed by the Euro zone in their bailout deal that included tax hikes, pension cuts and other measures.

Initially, most analysts expected the No vote to hasten the country’s exit from the Euro zone and the common currency.

However, most analysts now expect that country’s lenders to find a compromise over a possible bailout deal to keep the county in the Euro zone owing to the decisive nature of the result.

“I believe people are realizing that it’s in everybody’s best interest to keep Greece in the Euro zone. But the referendum forces financial discipline on someone,” JJ Kinahan, chief strategist at TD Ameritrade, told Market Watch.

“We expect volatility to stay higher than usual, however, as there are still lots of uncertainties besides Greece, namely Puerto Rico’s debt problems and earnings for the second quarter,” he added.

To contact the reporter of the story: Samuel Rae at samuel@forexminute.com