Dow Falls to Lowest Since December on Greece Concerns

U.S. stocks fell, sending the Dow Jones Industrial Average toward the lowest level on a closing basis since December, amid concern Greece may leave the euro and as Dell Inc. (DELL) tumbled on a disappointing revenue forecast. Citigroup Inc. and Bank of America Corp. retreated at least 1.5 percent, following losses in a measure of European banks. Dell slumped 16 percent, the most on a closing basis since 2000, as the personal computer maker also reported profit that missed estimates. Facebook Inc. (FB) the social networking site that raised $16 billion in an initial public offering last week rallied 4.3 percent after plunging 19 percent over the previous two days. The Standard & Poor’s 500 Index declined 1.2 percent to 1,301.32 at 10:40 a.m. New York time. The Dow decreased 160.68 points, or 1.3 percent, to 12,342.13, for the second day of losses. Trading in S&P 500 companies was almost in line with the 30-day average at this time of day. “Uncertainty surrounding Greece’s membership in the euro and possible contagion into other countries plagued by high deficits just isn’t going away, at least not until Greek elections have taken place on June 17th,” said Markus Huber, head of German sales trading at ETX Capital in London. The MSCI All-Country World Index lost 2 percent as European leaders meet to discuss the region’s debt crisis. The prospect of Greece leaving the euro increased after parties opposed to the terms of the nation’s second bailout by the European Union and the International Monetary Fund won most of the votes in May 6 elections. A fresh round of voting will be held June 17 after politicians failed to form a government.