June 11, 2012 / 3:46 PM / 7 years ago

US STOCKS-Wall St down on Spanish aid terms, Greek elections

 * Worries persist over Greek elections.
 * Investors concerned on aid deal terms for Spain
 * Wall St coming off S&P's best week of 2012
 * Indexes off: Dow 0.4 pct, S&P 0.3 pct, Nasdaq 0.3 pct

 (Updates to late morning trade)	
 By Angela Moon	
 NEW YORK, June 11 (Reuters) - U.S. stocks fell on Monday,
led lower by financial and material sectors, as a closer look at
the euro zone aid package for Spanish banks disappointed
investors and as market volatility rose ahead of the upcoming
Greek elections.	
 Spain will be lent up to 100 billion euros ($125 billion) to
help the country's battered banks. The size of the package was
larger than expected, partially removing a cloud that has been
hanging over financial markets. 	
 Investors have been fearing that a banking crisis in the
euro zone's fourth-largest economy could have compounded the
currency bloc's troubles with Greece ahead of that country's
June 17 elections, which many investors fear could lead to
Greece leaving the euro zone.	
 "A closer look at the deal shows that this is strategic and 
tactical rather than a comprehensive ECB nuclear bailout option.
Given the gravity of the European problem, not just Spain,
people kind of waking up to the fact that this is something but
not enough," said James Dailey, portfolio manager of TEAM
Financial Asset Management.	
 "A lot in the market had happened last week building up to
this. Now that we have this out of the way and Greek elections
on Sunday, what good could happen until then? We have lost a
short-term catalyst."	
 After the aid news was announced over the weekend, futures
indicated gains of more than 1 percent on Sunday. However, they
subsequently lost ground as concerns over the region persisted.
In addition, some weak data from China underscored the hurdles
being faced to strong growth.	
 The Dow Jones industrial average was down 43.59
points, or 0.35 percent, at 12,510.61. The Standard & Poor's 500
Index was down 3.97 points, or 0.30 percent, at 1,321.69.
The Nasdaq Composite Index was down 7.87 points, or 0.28
percent, at 2,850.55. 	
 In part because of uncertainty stemming from the euro zone,
U.S. companies are finding it more difficult to grow their
revenue now than at just about any time since the financial
crisis. 	
 Wall Street is coming off the previous week's advance, which
was 3.7 percent on the S&P 500, the index's biggest weekly gain
of 2012.	
 In a sobering sign of slowing overseas economic growth,
China's inflation, industrial output and retail sales all
flagged in May. It was the second straight month of sluggish
growth, which galvanized policymakers last week into taking
their boldest action yet to combat a sharpening slowdown.
 	
 Apple shares rose 1.1 percent to $586.70. Apple Inc 
kicks off its annual conference for software developers on
Monday, and more than ever, the consumer electronics juggernaut
finds itself in a pitched battle with the online search giant,
Google Inc - in smartphones, cloud computing and the
never-ending competition for the hearts and minds of the best
software developers.   	
 Facebook Inc is on the preliminary list to join the
Russell 3000 index , according to Russell
Investments on Monday. The stock is up 1.7 percent at $27.55.	
 Goldman Sachs is close to striking a deal over the
sale of its hedge fund administration business with State Street
Corp, the Financial Times reported. The move would
create the largest administration services provider to hedge
funds worldwide. The stock fell 0.7 percent to
$93.88. 	
	
	
 (Reporting By Angela Moon, editing by Dave Zimmerman)	
 	
 
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