1st LD Writethru: U.S. stocks retreat on lingering Greece debt drama

U.S. stocks declined on Friday, as investors' optimism faded regarding a resolution of the Greek debt crisis.

The Dow Jones Industrial Average fell 140.53 points, or 0.78 percent, to 17,898.84. The S&P 500 decreased 14.75 points, or 0.70 percent, to 2,094.11. The Nasdaq Composite Index was down 31.41 points, or 0.62 percent, to 5,051.10.

According to Greek government sources Friday, a delegation of top cabinet ministers prepares to return to Brussels to continue negotiations with creditors on Saturday amid an ongoing debt deal deadlock.

Greece for its part is hoping to reach a deal with international lenders by June 18, so that the next Eurogroup meeting will unlock vital aid to avert Greek bankruptcy.

The International Monetary Fund (IMF) said Thursday its delegation had left negotiations on Greece's debt talks in Brussels and flown home because of "major differences" with Athens.

On June 30, the extension of Greece's second bailout expires. On the same day, Athens needs to repay some 1.5 billion euros (1. 69 billion U.S. dollars) of loan installments to the IMF.

European equities suffered big losses amid the unfolding Greek debt crisis on Friday, with the Athens stocks diving nearly 6 percent.

In Asia, Chinese shares continued to rise on expectations that the central bank would further loosen its monetary policy during the coming weekend, with the benchmark Shanghai Composite Index ending at a new 7-year closing high in current bull run since the middle of last year.

On the economic front, the Producer Price Index for final demand rose 0.5 percent in May, seasonally adjusted, topping expectations, the U.S. Labor Department reported Friday.

U.S. Consumer confidence rebounded in early June, regaining its average level recorded since the start of the year.

The preliminary reading of the consumer sentiment in June increased from May's final reading of 90.7 to 94.6, beating market consensus of 91.2, said the monthly Thomson Reuters/University of Michigan survey of consumers Friday.

In a weekly basis, the blue-chip Dow added 0.3 percent, and the broader S&P 500 inched up 0.1 percent, while the tech-heavy Nasdaq dipped 0.3 percent. Endite