U.S. Stocks Tumble Over Greek Political Concerns

4:11 PM, May 8, 2012 -- U.S. stocks tumbled Tuesday as Greece's struggle to form a government caused investors to shun riskier assets such as stocks and commodities and instead seek shelter in the U.S. dollar and Treasury bonds.

In Greece, political leaders met for a second day in an effort to create a government after New Democracy's Antonis Samaras was unable to reach a consensus, with the task now falling to Alexis Tsipras, the head of Syriza, the party that received the second-most votes. Syriza, a hard-left party opposes the terms of Greece's latest rescue.

In today's session the Dow fell up to 198 points, with 28 of its 30 components in negative territory. In afternoon trading, for every stock on the rise, three fell on the New York Stock Exchange.

On the U.S. economic front, the International Council of Shopping Centers and Goldman Sachs Retail Chain Store Sales Index slid 0.8% in the week ended Saturday from the week before. "The fiscal month of May got off to a soft start as consumers were focused on non-retail activities this past week," according to prepared remarks by Michael Niemira, ICSC vice president of research and chief economist. On a year-over-year basis, the reading rose 3.3%.

Small business optimism jumped two points in April to 94.5 for the best reading for the NFIB Small Business Optimism Index in more than a year. Job creation plans and job openings both increased and capital spending plans are up. Small businesses are also reporting the best sales trends of the recovery, and they see big improvement in profit trends.

In company news, Jaguar Mining (JAG) fell to a 52-week low after the company announced that it had concluded its strategic review process respecting the possible change of control of JAG. Despite extensive efforts, the process did not resulted in an agreed change of control transaction.

Merge Healthcare Inc. (MRGE) shares touched a year-low after the company announced lower-than-expected Q1 results. MRGE reported Q1 revenue of $61.0 million and EPS of $0.03. Analysts polled by S&P Capital IQ wanted to see a top line of $64.7 million and EPS of $0.04 per share.

Commodities ended lower, with gold's most active contract falling to its lowest point of the year due to a rising Greenback. Gold ended down 2.1% to end at $1,604.50 an ounce. Crude for June delivery fell $1.46 to touch $96.53 a barrel.

Here's where the markets stood at end-of-day:

Dow Jones Industrial Average down 76.44 (-0.59%) to 12,932.09

S&P 500 down 5.86 (-0.43%) to 1,363.72

NASDAQ Composite Index down 11.49 (-0.39%) to 2,946.27

GLOBAL SENTIMENT

Nikkei 225 up 0.69%

Hang Seng Index down 0.25%

Shanghai China Composite Index down 0.12%

FTSE 100 down 1.78%

UPSIDE MOVERS

(+) GTXI, Reports Q1 Loss, Clinical Hold on Capesaris Lifted By FDA

(+) GNRC, Will pay $10 per share special dividend

(+) SVNT, Restructures Repayment of Debt

DOWNSIDE MOVERS

(-) FOSL, Mixed Q1, Sets Q2 Earnings Below Street View

(-) SYNC, Downgraded by Bank of America

(-) MAKO, Downgraded to Market Perform from Outperform at William Blair following results

(-) EA, Tops Q4 Expectations, Guidance Mostly Below Street

(-) GNOM, Releases Q1 Results