Friday's Closing Update: U.S. Stocks Tumble as Investors Fear Greek Debt Default

U.S. stocks fell sharply Friday and were on track for their worst day so far this year on concerns that Greek political leaders may not reach agreement on an austerity package. Without an agreement, the country will not receive a 130 billion-euro rescue package, and will likely default on 14.5 billion-euro bond payment due March 20.

Stateside, today's economic data were mixed. The gap between American imports and exports rose 3.7% to $48.8 billion from $47.1 billion in November, the Commerce Department said. Purchases of goods and services produced overseas were the strongest in more than three years on record demand for capital equipment like machinery and semiconductors.

The median forecast in a Bloomberg News survey of 75 economists called for the deficit to rise to $48.5 billion from a previously estimated $47.8 billion in November. Estimates ranged from gaps of $43 billion to $50.5 billion. For all of 2011, the shortfall grew 12% to $558 billion, the most since 2008. Both imports and exports climbed to records.

Also, the Thomson Reuters/University of Michigan overall index of consumer sentiment was 72.5 in early February, data showed on Friday, down from 75.0 in January and below the reading of 74.5 expected in a Reuters poll of economists. The drop was surprising following recent gains in employment. It helped send stocks lower after its 10 a.m. ET release, although shares have rebounded slightly near mid-day.

In company news, LinkedIn Corp (LNKD) rallied after Q4 sales more than doubled and the business social networking site forecast increased 2012 revenue.

Synacor Inc. (SYNC) climbed on its first trading day, after the company priced its IPO at the bottom end of a revised price range. SYNC sold 6.8 mln shares, which opened at $5.75 each on the Nasdaq, up 15% from its initial public offering price of $5. SYNC originally planned to price its IPO in the range of $10 to $12 a share.

RPX Corp (RPXC) climbed after Alcatel-Lucent (ALU) says it will offer access to its worldwide portfolio, which includes approximately 29,000 issued patents, through a licensing syndicate to be formed by RPXC, theflyonthewall.com reports.

Greek debt fears also impacted commodities. Crude-oil futures ended lower Friday, after the International Energy Agency cut its forecast for world oil demand in 2012. Crude for March delivery declined $1.17, or 1.2%, to end at $98.67 a barrel on the New York Mercantile Exchange.

Gold prices took a hit as safe-haven investors moved their money into U.S. bonds. Gold for April delivery retreated $15.90, or 0.9%, to settle at $1,725.30 an ounce on the Comex division of the New York Mercantile Exchange. Gold lost 0.9% of its value, this week.

Here's Where the Markets Stood at End-Of-Day:

Dow Jones Industrial Average down 89.23 (-0.69%) to 12,801.23

S&P 500 down 9.31 (-0.69%) to 1,342.64

NASDAQ Composite down 23.35 (-0.80%) to 2,903.88

GLOBAL SENTIMENT

Nikkei down 0.61%.

Hang Seng up down 1.08%.

Shanghai Composite up 0.10%.

FTSE-100 down 0.73%.

UPSIDE MOVERS

(+) CIE, New Oil off Angola Coast Topped Expectations.

(+) IPSU, Extending Thursday's Gains, May Sell Wholesome Sweeteners Unit.

(+) ASEI Better-Than-Expected Q3 Sales.

DOWNSIDE MOVERS

(-) AMRS, Reportedly Withdrew 2012 Production and Cash Flow Forecasts.

(-) XIDE, Q3 Financial Results Disappoint, Pares 2012 Guidance.

(-) OSG, Suspends Quarterly Dividend Payment.