Dow down after civil unrest in Greece

Stocks had their worst day of the year Friday after Greece hit a roadblock on its way to a critical bailout.

The Dow Jones industrial average closed down 89.23 points, or 0.69 percent, at 12,801.23. The Standard & Poor's 500 index finished down 9.31, or 0.69 percent, to 1,342.64. It was the first losing week for the S&P this year. The Nasdaq composite index closed down 23.35, or 0.80 percent, to 2,903.88.

Just a day earlier investors had bought stocks after Greek Prime Minister Lucas Papademos and the heads of the three parties backing his government agreed to slash wages, lay off civil service workers and cut government spending. That was seen as a step toward Greece's securing an international bailout that it must have to avoid defaulting on its debt next month.

On Friday, European finance ministers insisted Greece agree to deeper cuts in wages and spending. More than 15,000 people swarmed the streets of Athens, some hurling paving stones at police. Four cabinet ministers have resigned over the cuts.

"The economy in Greece is deteriorating faster than anticipated," said Mark Luschini, chief investment analyst at Janney Montgomery Scott. "There could be a disorderly default."

Since the start of the year, stocks have been generally rising on small daily gains because of good economic news and a sense that the worst of the debt crisis in Europe might be over.

-- AP