Stocks fall slightly; Greece debt deadline looms

NEW YORK - U.S. stocks fell slightly Thursday, following a sell-off in the Chinese market and continued worries about the approaching debt-payment deadline for cash-starved Greece.

The Dow Jones industrial average slipped 36.87 points, or 0.2 percent, to close at 18,126.12. The Nasdaq composite lost 8.62 points, or 0.17 percent, to 5,097.98. The Standard & Poor's 500 index edged down 2.69 points, or 0.13 percent, to 2,120.79.

Progress in talks between Greece and its creditors is unclear. Greece said it expected to reach a deal to get more bailout loans in time to make a key debt payment on June 5, but its creditors were quick to temper expectations.

Greece said it aims to clinch a deal by Sunday, which would allow it to receive the much-needed final installment of its international bailout and avoid a default. Many are skeptical that this round of talks will resolve any of the country's debt issues.

"They're likely to kick the can down the road, as they have been," said Scott Wren, a market strategist with Wells Fargo. "At this point, I think we're likely looking at Greece leaving the eurozone."

In European markets, Greek stocks fell 1.7 percent. Germany's DAX lost 0.8 percent. France's CAC-40 lost 0.9 percent. The United Kingdom's FTSE 100 index rose 0.1 percent.

A sell-off in Asia also unnerved investors. China's Shanghai Composite sank 6.5 percent. Stock market commentator Hexun attributed the drop to several factors, including brokerages tightening lending to individual investors, selling by speculators, and a Chinese sovereign wealth fund selling shares in two state banks.

Despite an economic slowdown in China, the index has gained 40 percent in the last three months. Chinese leaders have tried to tap the brakes on the stock boom, fearing it could run out of control and disrupt economic reform plans.

U.S. investors continued to look for insight into when the Fed might start raising interest rates. The central bank is expected to increase rates as early as September, but the bank's policymakers say any hike will depend on how the U.S. economy is doing.

On Thursday, government bond prices were flat. The yield on the 10-year Treasury note held at 2.14 percent.

In energy markets, oil ended slightly higher after the government reported bigger than expected declines in U.S. oil and gasoline supplies. The price of U.S. oil rose 17 cents to $57.68 a barrel in New York. Brent crude, used by many U.S. refiners in the production of gasoline, rose 52 cents to $62.58 in London.

Wholesale gasoline gained 4.1 cents to $1.985 a gallon. Heating oil rose 1.4 cents to $1.87 a gallon. Natural gas fell 14.1 cents to $2.706 per 1,000 cubic feet.

In metals trading, gold rose $2.30 to $1,188.80 an ounce, silver rose two cents to $16.67 an ounce, and high-grade copper was unchanged at $2.77 a pound.