U.S. stocks fall on Greece uncertainty

U.S. stocks were heading for a lower close in late-afternoon trading Monday. Uncertainty over Greece's latest bid to negotiate a deal with its creditors weighed on the market. Discouraging data on U.S. manufacturing didn't help. Industrials stocks were among the biggest decliners.

The Dow Jones industrial average was down 114 points, or 0.6 percent, to 17,785 at 3:33 p.m. ET. The Standard & Poor's 500 index fell 10 points, or 0.5 percent, to 2,084. The Nasdaq composite fell 24 points, or 0.5 percent, to 5,027.

"All eyes, including our own, are on Greece," said Erik Davidson, chief investment officer for Wells Fargo Private Bank. "This is a grand experiment and if it were to go awry, it would certainly have implications."

Weekend negotiations on Greece's bailout terms produced no breakthroughs and Greek officials and creditors remained far apart as a deadline for a debt payment nears. Greek leaders want to get access to the final 7.2 billion euros ($8.2 billion) of their bailout program that's needed to repay debts and avoid a possible default that could trigger an exit from the euro; the bailout package expires at the end of the month.

The Federal Reserve Bank of New York's Empire State manufacturing index fell to negative 2 this month. Readings below zero indicate contraction. The latest reading is a sign that manufacturers are likely still held back by a strong dollar and cutbacks in investment by oil and gas drillers.

The 10 sectors in the S&P 500 moved lower, with industrials stocks leading the slide. Humana was the biggest decliner among individual stocks, shedding $9.43, or 4.4 percent, to $203.11.

Shares in iDreamSky Technology slumped 10.7 percent on news that the Chinese mobile games licensing company received an offer to be taken private by its Chairman and CEO Michael Xiangyu. The stock slid $1.56 to $13.

AirMedia Group tumbled 18.6 percent following news that the Chinese advertising platforms company is selling a 75 percent stake in its advertising business for more than $338 million. The stock lost $1.35 to $5.91.

United Technologies fell 2.6 percent after the company said it would get out of the helicopter business. The stock slid $3 to $114.60.

Investors welcomed news late Sunday that California homebuilders Ryland Group and Standard Pacific have agreed to merge. Ryland rose $2.40, or 5.6 percent, to $45.19. Standard Pacific gained 51 cents, or 6.1 percent, to $8.87.

Dealertrack Technologies vaulted 57.5 percent on news that digital marketing company Cox Automotive is buying the maker of software used by automotive dealerships for about $4 billion. Shares in Dealertrack gained $22.93 to $62.78.

A gauge of U.S. homebuilders' confidence in their sales prospects surged this month to the highest level since September. The National Association of Home Builders/Wells Fargo builder sentiment index climbed to 59 this month, up five points from 54 the May reading. The news sent most U.S. homebuilders higher.

European stocks traded lower amid investor concerns over the lack of progress in Greece's bailout negotiations. France's CAC 40 shed 1.8 percent, while Germany's DAX dropped 1.9 percent. Britain's FTSE 100 lost 1.1 percent. Greece's benchmark index fell 4.7 percent.

Benchmark U.S. crude oil continued to fall, losing 44 cents to close at $59.52 a barrel on the New York Mercantile Exchange. The contract hit a high for the year on Wednesday but has been falling since then.

U.S. government bond prices rose. The yield on the 10-year Treasury note fell to 2.36 percent from 2.39 percent late Friday.

Precious and industrial metals futures closed mixed. Gold rose $6.60 to $1,185.80 an ounce, silver rose 26 cents to $16.08 an ounce and copper fell three cents to $2.65 a pound.