US open: Stocks in the red, while government bond prices gain on Greek 'no' vote

US stocks fell on Monday, taking their cue from a downbeat session in Europe, while government bond prices rose, following Greek voters’ overwhelming rejection of the country’s latest bailout terms.

However, losses were nowhere near as pronounced as might have been expected, with market participants pointing out that a ‘no’ vote was partially priced in, while the surprise resignation of Greek Finance Minister Yanis Varoufakis – a staunch opponent of spending cuts and tax increases – raised hopes that a deal might be reached.

In addition, there was a degree of optimism that the European Central Bank would intervene to limit the fallout.

At 1525 BST, the Dow Jones Industrial Average was down 0.4% at 17,658, the S&P 500 was 0.4% weaker at 2,069 and the Nasdaq Composite was down 0.3% at 4,993.

Meanwhile, the yield on benchmark 10-year US Treasury bond was down six basis points at 2.328%.

"Following the ‘no’ vote, the chief worry is over the liquidity of Greek banks,” said Jasper Lawler, market analyst at CMC Markets.

“Markets could get soothed or agitated later on Monday when the European Central Bank announces its plans for emergency lending to Greek banks. Most likely, the ECB will try to remain as apolitical as possible by maintaining the ELA at current levels rather than ending it or extending it based off of the referendum. However, its hand may be forced into the direction of ending it, should Greece miss its payment to the ECB on July 20. This makes July 20, Greece’s next big deadline”.

In economic news, the US services sector expanded at a slightly slower-than-expected pace in June, according to figures from the Institute for Supply Management.

The ISM non-manufacturing purchasing managers’ index nudged up to 56.0 in June from 55.7 in May, a touch lower than analysts’ estimates for a reading of 56.4. A reading over 50 indicates expansion.

The new orders gauge rose to 58.3 in June from 57.9 in May.

On the corporate front, American Apparel slid 1.9% after the clothing retailer revealed plans to cut costs by closing stores and streamlining its workforce.