New York Stock Exchange officials have a conversation on the floor of the exchange shortly before the opening bell in New York on July 9, 2015.LUCAS JACKSON/Reuters
U.S. stocks retreated, as Greek lawmakers began debating a new bailout and Federal Reserve Chair Janet Yellen signalled the central bank remains on track to raise interest rates this year.
The Standard & Poor's 500 Index slipped 0.3 per cent to 2,103.20 at 2:53 p.m. in New York, after the benchmark rose to a three-week high Tuesday.
"If you take how far we've come in the last three days, throw a riot on TV and toss in the fact that it appears that Greek parliament is still debating this package – that's enough to hit the market late in the afternoon on a quiet day." said Michael Antonelli, an institutional equity sales trader and managing director at Robert W. Baird & Co. in Milwaukee.
Riot police fired tear gas to disperse crowds gathered in Syntagma Square, across the road from the Greek parliament, around 9:15 p.m. local time. Lawmakers are due to vote on the bailout bill, which will endorse tax increases and spending cuts, by about midnight.
Meanwhile, a strengthening U.S. economy and waning risks from Greece and China are keeping the Fed on track for a rate increase this year. Yellen, in testimony delivered today before the House Financial Services Committee in Washington, again emphasized that the timing of the first rate rise is less important than the subsequent path of increases, which she said would be gradual.
Producer Prices Forecasts issued by the Federal Open Market Committee in June implied two quarter-point rate rises this year, followed by a shallower path of increases than officials predicted in March.
Data today showed wholesale prices in the U.S. climbed more than forecast in June as the cost of fuel picked up. A separate report showed factory output was little changed in June for a second month, held back by a decline in motor vehicle production.
The Fed's latest Beige Book report today on regional economic conditions indicated the economy kept expanding from mid-May through June, despite mixed consumer spending and somewhat less optimism among respondents.
The S&P 500 fell as much as 4 per cent from its all-time high, and has since recovered to trade within 1 per cent of its record set in May as the Greek crisis neared a resolution and China shares stabilized. The benchmark gauge and the Dow rose at least 3 per cent over the previous four sessions.
Netflix Inc. and Intel Corp. are among eight S&P 500 companies reporting quarterly results today. Analysts project earnings for members of the gauge dropped 6.4 per cent in the second quarter.