(MENAFN- AFP) Wall Street stocks dropped early Tuesday on worries about a potential Greek default and poor Chinese growth as US airline stocks fell sharply for a second straight session.
About 35 minutes into trade, the Dow Jones Industrial Average was at 17,726.14, down 40.41 points (0.23 percent).
The broad-based S&P 500 lost 5.25 (0.25 percent) at 2,074.03, while the tech-rich Nasdaq Composite Index fell 35.51 (0.71 percent) to 4,986.12.
Equity markets in Britain, France and Germany were all lower as Greece submitted a new reform plan to creditors while Prime Minister Alexis Tsipras warned the lack of a deal would lead to the collapse of the eurozone.
Briefing.com analyst Patrick O'Hare said investors were also edgy over weak Chinese inflation data and a warning from former Federal Reserve Chair Paul Volcker on creaky finances in US states.
United Continental dropped 2.5 percent after it lowered for a closely-watched revenue benchmark, passenger revenue per available mile, citing weaker-than-expected domestic bookings and a fall in business from the oil industry.
American Airlines fell 2.4 percent after it projected lower second-quarter passenger revenues as well.
Delta Air Lines meanwhile lost 3.2 percent) and Southwest Airlines 5.4 percent.
Most US carriers' shares fell 3-7 percent on Monday amid growing worries over rising competition and capacity.
Dow member General Electric was up 0.2 percent following its announcement of the sale of a pair of finance assets to the Canada Pension Plan Investment Board for $12 billion. GE in April announced plans to sell most of its banking business to refocus on heavy indus
Athletic attire company Lululemon Athletica jumped 6.7 percent after lifting its forecast. The company now projects 2015 sales of $2.0-$2.05 billion, compared with the previous range of $1.97-$2.02 billion.
General Motors rose 0.8 percent as chief executive, Mary Barra, again rebuffed talk of a potential merger with Fiat Chrysler.
Bond prices fell. The yield on the 10-year US Treasury rose to 2.42 percent from 2.38 percent Monday, while the 30-year advanced to 3.15 percent from 3.11 percent. Bond prices and yields move inversely.
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