Early stock gains slip away

NEW YORK, May 16 (UPI) -- U.S. stock market gains faded Wednesday as worries over the Greek economy continue to shake investor confidence.

Talks to create a coalition government in Athens have failed, forcing Greek President Karolos Papoulias to appoint a caretaker government that would hold the reins until mid-June, when a second national election would take place.

In Washington, the Commerce Department said U.S. housing starts rose 2.6 percent in April, but permits issued -- a predictor or future construction activity -- were down 7 percent in the month compared to March.

By close of trading on Wall Street, the Dow Jones Industrial Average gave up 33.45 points, or 0.26 percent, to 12,598.55. The tech-heavy Nasdaq composite index turned from positive to negative with the index down 19.72 points or 0.68 percent, to 2,874.04. The Standard & Poor's 500 index shed 5.86 points, 0.44 percent, to 1,324.80.

On the New York Stock Exchange, 990 stocks advanced and 2,051 declined on a volume of 4.1 billion shares traded.

The benchmark 10-year treasury note rose 2/32 to yield 1.759 percent.

The euro fell to $1.2716 from Tuesday's $1.273. Against the yen, the dollar rose to 80.36 yen from Tuesday's 80.19 yen.

In Tokyo, the Nikkei 225 index fell 1.12 percent, 99.57, to 8,801.17.

In London, the FTSE fell 0.6 percent, 32.37, to 5,405.25.