NEW YORK — U.S. and global stocks headed lower Wednesday as negotiations between Greece and its lenders drag on and investors become less hopeful that a deal will be reached soon, AP reports.
KEEPING SCORE: The Dow Jones Industrial average was down 29 points, or 0.2 percent, to 18,116 as of 10:50 a.m. Eastern, ending a two-day advance. The Standard & Poor’s 500 index lost a point to 2,124 and the Nasdaq composite was up a point to 5,161.
GREECE TALKS: Greece and its creditors continue to hold meetings to reach a new bailout deal for the country. Greece needs loans in time to make a debt payment on June 30. The sides appeared to be moving closer to an agreement this week, but on Wednesday it became clear that some differences remain on what reforms Greece should make in exchange for loans.
German Finance Ministry spokesman Martin Jaeger said his delegation was heading to a meeting on Greece with “realistic expectations” and its impression was that plenty of work remains to be done.
Greek stocks fell 2 percent. Germany’s DAX fell 0.4 percent, France’s CAC 40 was flat and the U.K.’s FTSE 100 was up 0.3 percent.
EYES ON FED: Investors also remain focused on when the U.S. Federal Reserve might increase its key interest rate for the first time in nearly a decade. Fed Governor Jerome Powell said at an event on Tuesday that he expects the U.S. central bank to begin raising its benchmark interest rate in September, with a second rate rise coming in December.
The expectations of an interest rate increase rose after a report released Wednesday showed that the U.S. economy contracted less than previously thought in the first three months of the year. The Commerce Department said first quarter GDP fell 0.2 percent, compared with its previous report of a 0.7 percent contraction.
SPLIT SCREEN: Netflix shares rose $12.05, or 2 percent, to $694.50 after the company announced late Tuesday that it would do a seven-for-one stock split.
BONDS: The yield on the 10-year Treasury note rose to 2.41 percent from 2.40 percent the day before.
ENERGY: Benchmark U.S. crude rose 14 cents to $61.13 a barrel on the New York Mercantile Exchange. Brent crude, which is used to price international oils, fell 5 cents to $64.39 a barrel.
CURRENCIES: The euro edged down to $1.1187. The dollar rose to 124.32 Japanese yen.