Stocks Close In The Red Amid Worries About Greece - U.S. Commentary

(RTTNews) - After coming under pressure in early trading, stocks remained in the red throughout the trading session on Friday. The drop on the day came on the heels of the volatility seen in the two previous sessions.

The major average fluctuated as the day progressed but remained firmly in negative territory. The Dow slid 115.44 points or 0.6 percent to 18,010.68, the Nasdaq fell 27.95 points or 0.6 percent to 5,070.03 and the S&P 500 dropped 13.40 points or 0.6 percent to 2,107.39.

The weakness on Wall Street reflected continued concerns about the outlook for the ongoing debt negotiations for Greece.

While Greek officials have expressed optimism about reaching an agreement with the country's international creditors, European officials have been far more pessimistic.

International Monetary Fund Managing Director Christine Lagarde told a German newspaper it is "very unlikely" a comprehensive solution will be reached in the coming days.

Lagarde also acknowledged that a Greek exit from the eurozone is a "possibility" but said it would "probably not be an end to the euro."

On the U.S. economic front, the Commerce Department recently released a report showing that economic activity in the U.S. contracted for the first time in a year in the first quarter of 2015

The report said gross domestic product fell by 0.7 percent in the first quarter compared to the previously reported 0.2 percent uptick. The drop came on the heels of a 2.2 percent increase in the fourth quarter.

The revised decrease in GDP in the first quarter was still slightly smaller than the 0.8 percent drop expected by economists.

A separate report from MNI Indicators showed an unexpected contraction in Chicago-area business

Sector News

Despite the pullback by the broader markets, most of the major sectors ended the day showing only modest moves.

Truck stocks saw significant weakness, however, resulting in a 1.6 percent drop by the Dow Jones Trucking Index. With the drop, the index ended the session at its lowest closing level in seven months.

Knight Transportation (KNX) and Old Dominion (ODFL) turned in two of the trucking sector's worst performances.

Electronic storage, steel, software and housing stocks also showed notable moves to the downside on the day.

Other Markets

In overseas trading, stock markets across the Asia-Pacific region turned in yet another mixed performance during trading on Friday. Japan's Nikkei 225 Index inched up by 0.1 percent, while Hong Kong's Hang Seng Index edged down by 0.1 percent.

Meanwhile, the major European markets have all moved to the downside on the day. While the U.K.'s FTSE 100 Index has dipped by 0.2 percent, the French CAC 40 Index and the German DAX Index are both down by 1.8 percent.

In the bond market, treasuries moved notably higher after closing nearly flat for two straight days. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, fell by 3.5 basis points to 2.095 percent

Looking Ahead

With the next Federal Reserve meeting in just over two weeks, the monthly employment data is likely to be in focus through next week.

As a result of the focus on the jobs report, traders may overlook key reports on personal income and spending, national manufacturing activity, and international trade.