Greece debt worries send stocks lower

By CHIP CUTTER

AP Business Writer

NEW YORK — So much for a comeback in the stock market.

Stocks fell sharply today, giving up all of their gains from the

day before, as investors became increasingly concerned about the

worsening debt crisis in Greece. The dollar rose against the euro and

U.S. government bond prices climbed as investors sought out safer

assets. The yield on the 10-year Treasury note, which moves opposite

its price, fell below 3 percent.

A report on manufacturing in the New York area also came in far below

forecasts. That reignited fears that factory production, one of the

few bright spots in the U.S. economy, may be weaker than many

economists had believed.

The new jitters about Greece and what it might mean for the global

financial system wiped out optimism from the day before, when stock

indexes posted their biggest gains so far in June on

better-than-expected retail sales.

“It’s sell and ask questions later,” said Steven Goldman, chief market

strategist at Weeden & Co. in Greenwich, Conn.

In afternoon trading, the Dow Jones industrial average fell 161

points, or 1.3 percent, to 11,914, giving up its 123-point gain from

Tuesday. The Dow has only had three days of gains in June.

The Standard & Poor’s 500 index fell 19, or 1.5 percent, to 1,268. The

Nasdaq composite index fell 31, or 1.2 percent, to 2,647.