Stocks lost ground on Wednesday as investors kept their eyes on the precarious situation in Greece. Bobbi Rebell reports.
Renewed concerns over the Greek debt talks spurred investors to sell. Dampening investor sentiment: creditors demanded changes to the tax and reform proposals submitted by Greece's prime minister. Even the news that the U.S. economy shrank less than expected in the first quarter failed to lift spirits. OppenheimerFunds' investment strategist Alec Young: SOUNDBITE: ALEC YOUNG, INVESTMENT STRATEGIST, OPPENHEIMERFUNDS (ENGLISH) SAYING: "The key takeaway is that it really, probably, understates growth in the overall U.S. economy as we look through the second half of the year. We had a few unusual factors - the West Coast port slowdown, we had bad weather, we had a variety of seasonals weighing on things. So, we're looking for growth to pick up." Activist investor Carl Icahn tweeted that he's selling his remaining stake in the video streaming company, Netflix. He made his case for Apple again, saying it offers the same opportunity that Netflix had offered. Apple was the Dow's top gainer. Netflix, which had risen earlier on its announcement of a stock split, trimmed its gains after Icahn sounded off. Goldman shifting gears in Motown: Goldman Sachs upgraded Ford shares to "buy" from "neutral" and did the reverse for GM's shares. It says, Ford's launch of the F-150 pickup truck and positioning in China will spur "superior growth." By contrast, Goldman notes GM is more dependent on China earnings than Ford and may have to cut its guidance for the mainland. And it's concerned by GM's rising incentives to spur truck sales. The day's biggest gainer on the S&P 500: Lennar. The home builder's shares jumped after its quarterly profit rocketed 33 percent higher on strong revenue. UBS hiked its price target and earnings estimate. Across the pond, doubts over Greece's debt crisis pushed shares lower. But the FTSE managed to eke out a gain.