Stocks Give Back Gains on Greek Worries

By Avi Salzman

The Dow almost had its first two-day winning streak in a row on Tuesday, but then the former Greek prime minister started talking.

In an interview with DJ/FX Trader, former Prime Minister Lucas Papademos said that the country is preparing for a possible exit from the euro zone. He said that “such a scenario is unlikely to materialize,” but that “preparations are being made to contain the potential consequences of a Greek exit.”

Papademos was forced to step down after Greek elections earlier this month led to disarray, with no party able to form a government. Greeks will vote again on June 17, and the election could determine whether the country stays in the euro zone.

The market, which had been rising on stronger than expected home sales data, fell suddenly on the news. The Dow ended the day down 0.01%, and the S&P 500 rose 0.05%. TheDow had risen as high as 71 points in midday trading.

That said, bank stocks persevered, with JPMorgan Chase (JPM) ending the day up 4.6%.