NEW YORK (TheStreet) -- Stocks were pushed further into the red by late afternoon Wednesday after negotiations between Greece and its creditors stalled, once again.
The S&P 500 was down 0.64%, the Dow Jones Industrial Average fell 0.85%, or 153 points, and the Nasdaq slipped 0.70%. Each sector within the S&P 500 entered negative territory.
Industrial chemicals company DuPont (DD) - Get DuPont de Nemours, Inc. Report was the worst performer on the Dow after JPMorgan and Credit Suisse issued pessimistic notes on the planned spinoff of its Chemours division. Analysts at JPMorgan said the spinoff would likely cause DuPont to lose roughly $978 million in operating income. DuPont shares fell 3.3%.
Greece's list of reforms submitted on Monday reportedly were rejected by eurozone leaders, according to Bloomberg. Creditors reportedly have returned a list of revised terms.
A special Eurogroup meeting will be held Wednesday with hopes to present a deal at the European Union Summit on Thursday. Talks have escalated as Greece faces a crucial repayment to the International Monetary Fund by the end of the month.
"The down-to-the-wire Greek negotiations are likely to have a positive result: an accord with Greece's creditors," said Peter Cardillo, chief market economist at Rockwell Global Capital. "With or without a default, the likelihood of a Greek exit from the euro is slim at best."
Facebook (FB) - Get Meta Platforms Inc. Class A Report hit a record intraday high earlier in the session, climbing to $89.25. This marks the third straight session of gains for the social network. By mid-afternoon, shares were up 0.9% to $88.57.
Staples (SPLS) and Office Depot (ODP) - Get ODP Corporation Report were both lower on fears their $6.3 billion merger might be challenged. The deal looks less likely after a federal judge blocked the merger of Sysco (SYY) - Get Sysco Corporation Report and US Foods, a deal with similar characteristics.
Oil inventories declined for the eighth consecutive week over the seven days ended June 20. Crude inventories declined by 4.9 million barrels, more than double estimates of a 2.1-million-barrel drop. West Texas Intermediate crude on Wednesday fell 0.2%, settling at $60.27 a barrel.
Lennar (LEN) - Get Lennar Corporation Class A Report was one of the best performers on the S&P 500, adding 4.3% after reporting second-quarter earnings of 79 cents a share, 15 cents above estimates. The homebuilder generated revenue of $2.39 billion, up 31.3% from a year earlier. Fellow homebuilders Hovnanian (HOV) - Get Hovnanian Enterprises, Inc. Class A Report, KB Home (KBH) - Get KB Home Report, D.R. Horton (DHI) - Get D.R. Horton, Inc. Report and Ryland Group (RYL) followed Lennar higher.
The final estimate of first-quarter GDP showed the U.S. economy contracted at a slower-than-expected pace than originally believed. GDP was revised to reflect a 0.2% contraction compared to a previously estimated 0.7% decline.
Monsanto (MON) shares were on watch after the agricultural chemicals company reported a mixed quarter. The company earned $2.39 a share, 32 cents higher than expected, while revenue of $4.58 billion fell short of estimates.
Netflix (NFLX) - Get Netflix, Inc. Report jumped 1% after announcing it will execute a 7-for-1 stock split on July 14. Shares moved above $700 for the first time, but dropped 0.3% on Wednesday afternoon, trading near $680. Billionaire investor Carl Icahn sold his stake in Netflix on Wednesday, he announced on Twitter.
Stocks edged higher on Tuesday with the Nasdaq reaching a new record close as investors held out hope that a deal to resolve Greece's lingering debt problems could be reached by the weekend. Click here for more.