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Greek fears drag down stocks

Thursday, July 02, 2015 - 02:15

Stocks lost ground for the week as fears about Greece and its financial troubles dominated trading. Bobbi Rebell reports.

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Concerns over Greece's debt crisis outweighed the big jobs report on investors' minds, sending stocks lower. The IMF warned that European loans to Greece may need to be extended and possibly written off. For the week, the Dow, S&P 500, Nasdaq all lost ground. Earlier, stocks rallied on a tepid jobs report. That had futures traders betting the Fed would hike interest rates next year instead of this fall. Employers added a less-than-expected 223,000 workers in June, a slowdown from May. The unemployment rate fell to 5.3 percent. But Standard and Poor's Beth Ann Bovino says the rate fell for the wrong reason. SOUNDBITE: BETH ANN BOVINO, U.S. CHIEF ECONOMIST, STANDARD AND POOR'S (ENGLISH) SAYING: "A lot of it was because people left work ,not because they got a job. So that's a little bit, a kind of, you know, sad ending in that sense. People are leaving the market. That means less productivity, and that also means slower growth for the U.S." Tesla shares took off after the electric car maker said deliveries of its Model S sedan rose 52 percent in the second quarter over last year. Aeropostale was one of the day's leading gainers among small company stocks. The teen retailer said it will open stores in India and Indonesia over the next five years. Shares of Western Union dropped after Evercore ISI downgraded the stock to "hold" from "buy." The investment bank said PayPal's deal to buy rival digital money transfer provider Xoom poses a threat. No vroom here. Shares of International Speedway struck a speed bump after its 17 percent rise this year. The operator of the Daytona International Speedway and other racetracks posted falling quarterly sales and profit that missed analysts' estimates. Electrolux's CEO said he's confident the Swiss appliances giant can complete its deal to buy GE's appliances business, but its shares dropped. On Wednesday, the U.S. Justice Department sued to block the deal, arguing it would hurt competition. Electrolux, which own the Frigidaire and Kenmore brands, added to the negative momentum in Europe, where overall shares dropped. The latest turns in the Greek debt crisis also pressured stocks there. But the FTSE 100 bucked the downdraft.

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Greek fears drag down stocks

Thursday, July 02, 2015 - 02:15