DOW - Are bears back in control?

Dow 11,934.58 -115.42 -0.96%

4:35 pm : The resumption of selling pressure amid rekindled concerns over Europe resulted in another weekly loss for stocks. The market has mustered only one weekly gain, which was actually only an incremental move higher, since April.

News that Greece has agreed to a five-year austerity plan with the EU and IMF has been regarded as a positive, but participants remain mindful of the challenges related to passing the plan in parliament, implementing it, and then upholding it. Failure in any facet would prolong the country's troubles.

Traders were reminded that Greece isn't the only country in the eurozone periphery that is grappling with fiscal and financial problems when rumors surfaced that several Italian banks are undercapitalized. Questions and concerns about the financial future of countries in the eurozone periphery detracted from a pleasing IFO reading from Germany, which is the largest economy in Europe, and generally regarded as the most financially sound.

Domestic data proved pleasing, but the positive response dissipated after the open. To the surprise of many economists, first quarter GDP was revised upward to reflect growth of 1.9%. Durable goods orders for May jumped 1.9% after an upwardly revised 2.7% decline in the prior month, but orders less transportation increased by 0.6% after a 0.4% decline in the prior month. The consensus among economists polled by Briefing.com had called for a 1.8% increase in total orders and a 0.7% increase in orders less transportation