US stocks end lower for first time in three days

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Negotiations between Greece and its creditors made little progress

U.S. stocks ended lower on Wednesday, 24 June 2015 after two consecutive sessions of gains, as Greece and its creditors made little progress in negotiating a debt deal which would avert a default. Selling on Wall Street began in early trade, but as it became clearer that an accord wouldn't be reached Wednesday between Greece and its international creditors, the selloff intensified.

The Dow Jones Industrial Average dropped 178 points, or 1%, to 17,996.07. The S&P 500 fell 15.62 points, or 0.7%, to 2,122.41, with losses across the board. The Nasdaq Composite fell 37.68 points, or 0.7% to 5,122.41, retreating from a all-time highs reached Tuesday. The Nasdaq Composite COMP, -0.73% fell 37.68 points, or 0.7% to 5,122.41, retreating from a all-time highs reached Tuesday.

Materials led the losses. Excluding Apple Inc., all Dow components finished lower.

Equity indices began the day with slim losses after the International Monetary Fund rejected Greece's restructuring proposal, putting the two sides back at square one. According to Greek Prime Minister Alexis Tsipras, this was the first time the IMF did not accept equivalent fiscal measures proposed by Greek officials.

Treasuries held gains throughout the day, climbing to highs during the afternoon to send the 10-yr yield lower by four basis points to 2.37%.

Today's trading volume represented the highest level of activity this week with more than 720 million shares changing hands at the NYSE floor.

Economic data was limited to Q1 GDP and MBA Mortgage Index. First quarter GDP declined 0.2% in the third estimate, up from a previously reported 0.7% decline in the second estimate, which is what the consensus expected. The upward revisions had a positive effect on real final sales, but it wasn't enough to change the overall outlook as real final sales were revised up to -0.6% from -1.1%.

The weekly MBA Mortgage Index rose 1.6% to follow last week's 5.5% decline.

There was a downbeat economic report coming out of Germany on Wednesday. The Ifo business confidence fell to 104.7 in June from 108.5 in May, and the lowest level since February. Worries about Greece are blamed on the decline in business confidence in Germany, which is the economic work horse of the European Union.

A news story Wednesday said Chinese consumer demand for gold has tapered off significantly this year (down just under 15% so far in 2015) due to many consumers preferring Chinese stocks over gold as an investment asset. The story said China gold imports could drop by 20% by the end of this year. However, the report also said consumer demand for gold in India is up this year, due to the easing of gold import restrictions by the Indian government. China and India are neck-and-neck the largest gold importers in the world.

It was mixed finish for bullions on Wednesday, 24 June 2015 at Comex. Gold futures settled lower on Wednesday for a fourth session in a row as investors looked at first quarter data on the U.S. economy to gauge the timing of the Federal Reserve's interest-rate hike and kept an eye on Greece's stalled debt negotiations.

Gold for August delivery on Comex fell $3.70, or 0.3%, to settle at $1,172.90 an ounce. Prices settled at their lowest level since June 5. July silver rose 11.6 cents, or 0.7 %, to $15.853 an ounce, rebounding after Tuesday's 2.5% decline.

Oil futures settled lower on Wednesday, 24 June 2015 after a weekly U.S. government report revealed an unexpected climb in gasoline supplies and an increase in oil production.

August crude lost 74 cents, or 1.2%, to settle at $60.27 a barrel on the New York Mercantile Exchange following a volatile session in the wake of supply data.

Tomorrow, weekly Initial Claims (consensus 271K) and May Personal Income/Spending data will be released at 8:30 ET.

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