Stocks fall sharply as Greek deal is held up

NEW YORK – 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 0.7 percent, at 12,801.23. The broader Standard & Poor's 500 finished down 9.31 points to 1,342.64. It was the first losing week for S&P this year.

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.