Greek politics push markets into losses

At the end of the day, positive economic data on U.S. housing and factory output couldn't counter the weight on the equities markets caused by the political turmoil in Greece.

After gaining through noon Wednesday, the Dow Jones industrial average slid. Oil closed at its lowest level since November. The euro fell to a four-month low. And the price of gold was at its lowest level since December.

As investors fled to safer U.S. government bonds, the yield on the benchmark 10-year Treasury note hit its lowest this year.

New elections were called in Greece for June 17 after coalition talks to form a government fell apart.

The Dow closed down 33.45 points at 12,598.55. The Standard & Poor's 500 index dropped .44 percent to 1,324.80. The Nasdaq composite index fell .68 percent to 2,874.04.

Volume was slightly above average at 4.2 billion shares. Declining stocks outpaced advancers 2-to-1.

The good news came early. According to a U.S. Commerce Department report, U.S. home builders started work in April on single-family homes and apartments at a seasonally adjusted annual pace of 717,000, a surprisingly strong number that suggests the housing market may be on the mend.