NEW YORK - U.S. stocks dipped Tuesday, even as investors seemed calm about the lack of progress in talks between Greece and its creditors over a new bailout.
The Dow Jones industrial average lost 20 points, or 0.3 percent, to 17,999 as of 12:08 p.m. ET. The Standard & Poor's 500 index and Nasdaq composite traded largely flat.
"The [dollar] is trading broadly lower this morning and markets seem quite relaxed despite the breakdown in talks between Greece and the EU," said Shaun Osborne, chief foreign exchange analyst with TD Securities. " 'Grexit' risks are rising, but markets appear to be assuming that the usual 11th hour compromise will emerge."
Greece's European creditors told it to ask for an extension to its existing bailout program before further talks on its financing can take place. After five years of punishing austerity, Greece wants to scrap its existing program in favor of a new one with easier terms. If no agreement is reached by the end of the month, investors expect that Greece may have little option but to default and stop using the euro currency. Most analysts expect a deal will be reached in time.
"It remains our central view that an eleventh-hour compromise between Greece and its creditors is still likely," said Jane Foley, analyst at Rabobank International.
Across the continent, European indexes were modestly lower. France's CAC-40 was down 0.1 percent, Germany's DAX edged down 0.4 percent. Britain's FTSE 100 rose 0.4 percent. Greek stocks fell 2.5 percent.
U.S. benchmark crude was down $1.64 to $51.14 per barrel on the New York Mercantile Exchange. The contract gained $1.57 to close at $52.78 Friday. U.S. markets were closed Monday for Presidents Day.
Goodyear Tire & Rubber's stock surged after the company reported a jump in its quarterly profit, thanks to a $2 billion tax credit that offset the effect of a stronger dollar on sales. Goodyear rose 79 cents, or 3 percent, to $26.71 in early trading.
Starwood Hotels was up $2.55, or 3 percent, to $81.11 after the company announced the sudden resignation of its CEO Frits van Paasschen. The company's board of directors said it would pivot the company toward timeshares and other high-growth areas of the hospitality industry.
Prices for U.S. government bonds fell, pushing the yield on the 10-year Treasury note up to 2.09 percent. The dollar rose to 118.96 yen from 118.27 yen. The euro rose to $1.1394 from $1.1335.