US open: Stocks fall amid concern over Greece; AMD shares plunge

US stocks were in the red in early trading, with investors cautious as Greece and its creditors resumed talks, amid media reports that Greek officials arrived at the Eurozone summit in Brussels without a new bailout proposal.

BY 1515 BST, the Dow Jones Industrial Average was down 0.6% at 17,569, the S&P 500 was 0.7% lower at 2,054 and the Nasdaq was 1% weaker at 4,942.

According to the Financial Times, which cited a number of senior Eurozone officials, the lack of a fresh cash-for-reforms plan from Athens has taken the bloc's finance ministers by surprise.

Many had expected Greek officials to come to the meeting with a new proposal following Sunday's referendum which saw the Hellenic Republic vote a resounding 'no' to the terms of a previous bailout proposal by creditors.

Ahead of the summit, German Chancellor Angela Merkel, French President Francois Hollande and Eurogroup chair Jeroen Dijsselbloem had all called on Greece to present a new, "serious" and "credible" economic package in exchange for aid.

Reports suggested that a new aid proposal to European creditors might be submitted on Wednesday.

“Any new measures put forward by Greece will include debt forgiveness, a red line for creditors, so if that red line remains in place then a deal is highly unlikely and the exit door will be swung wide open,” said Angus Campbell, senior analyst at FXPro.

If Greece does not manage to secure fresh funds, the debt-ridden nation will default on the €3.5bn it is due to repay the European Central Bank on 20 July.

The European Central Bank has kept the ceiling on its Emergency Liquidity Assistance for Greek banks unchanged, but raised the haircuts for debt needed to post as collateral when applying for ELA.

Greek banks and stock markets remained closed on Tuesday. The Hellenic Capital Market Commission said the Athens stock exchange will be closed until Thursday.

On the economic front, data released earlier showed the US trade deficit increased slightly in May, reaching $41.87bn after a downwardly revised print of -$40.7bn for the prior month, on the back of lower aircraft sales. Analysts had expected a deficit of $42.70bn.

In corporate news, shares of Advanced Micro Devices plunged 15% after the company lowered its revenue forecast for the second quarter late on Monday.

Meanwhile, shares in plastic manufacturer A. Schulman Inc fell 11% after saying late on Monday that it swung to a loss in the third quarter.

On the upside, though, Depomed surged 37% as Horizon Phama said it was taking its bid for the company hostile, after revealing that the offer it made to acquire all of Depomed’s outstanding shares in May was rejected.