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U.S. stocks declined, following the biggest weekly retreat in 2012 for the Dow Jones Industrial Average, as Greece struggled to form a new government amid growing speculation the nation may leave the euro region.
Global stocks fell as Greece’s political deadlock went into a second week after President Karolos Papoulias failed to secure agreement on a unity government and avert new elections with the country heading toward a possible exit from the euro area. Greece’s biggest anti-bailout party defied overtures to join the government yesterday, deepening the impasse.
Equities pared losses as Alexis Tsipras said his Syriza party wants Greece to stay in the euro and Europe must reexamine its policy of austerity.
American banks slumped as a measure of European lenders tumbled 2.8 percent. JPMorgan (JPM), which plunged 9.3 percent on May 11, lost 2.1 percent to $36.20. Bank of America (ВАС) fell 1.7 percent to $7.42. Citigroup Inc. retreated 2.7 percent to $28.57.
Symantec slid 0.8 percent to $15.32. Goldman Sachs cut its rating to sell from neutral, citing worsening margins and cash flows. The share-price estimate was lowered to $14 from $16.
Chesapeake Energy Corp. surged 7.8 percent to $15.97. The company reached a $3 billion loan agreement with a unit of Goldman Sachs Group Inc. and affiliates of Jefferies Group Inc. to help ease a cash shortfall that threatens to curtail its development of oil and natural-gas wells.
Avon Products Inc. rallied 3.9 percent to $20.97 as the company said it will respond within a week to Coty Inc., the perfume-maker that last week boosted its takeover offer for Avon to $10.7 billion.
Yahoo! Inc. rose 2.6 percent to $15.58. Chief Executive Officer Scott Thompson is stepping down after failing to correct errors in his credentials and the company is revamping its board, handing a victory to activist investor Daniel Loeb, who had pushed for the overhaul.
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