By Anora Mahmudova and Sara Sjolin, MarketWatch

Empire State manufacturing index dips

NEW YORK (MarketWatch) -- U.S. stocks were under pressure on Tuesday, with the S&P 500 retreating from its record level reached last week.

A deadlock between Greece and its creditors, after talks collapsed on Monday, is weighing on sentiment, while weaker-than-expected readings on manufacturing and housing activity added to downbeat mood on Wall Street.

The S&P 500 (SPX) edged lower, with seven of its 10 main sectors trading in the red. Utilities were leading the losses, while a drop in oil prices hit energy stocks.

The Dow Jones Industrial Average (DJI) fell, with 25 of its 30 members trading lower. Microsoft and American Express led losses, while the tech-centric Nasdaq Composite Index (RIXF) also moved lower.

Greece is still the focus: U.S. markets were closed for Presidents Day on Monday, so investors didn't have a chance to react to the latest news of stalled negotiations on Greece until Tuesday.

Talks among eurozone finance ministers broke down abruptly after European markets had closed on Monday, when Greece's new anti-austerity government rejected an extension to its 240-billion-euro ($272 billion) bailout program under the conditions offered by its European partners.

Greece's current program expires at the end of February.

"With investors starting to fret over the genuine prospect of Greece printing drachma in the coming weeks, it looks like global markets are in for a turbulent ride," said Mike McCudden, head of derivatives at Interactive Investor, in a note. "However, with a 'Grexit' remaining highly unlikely -- the eurozone traditionally taking negotiations to the wire -- any panic dips could present buying opportunities."

Finance ministers from the full European Union, known as Ecofin, were meeting on Tuesday, and a new meeting of the Eurogroup, a smaller group of eurozone finance ministers might be scheduled for Friday. Read: These 5 charts explain the latest Greek drama

Greece's Athex Composite index slid 1.7% to 845.06, while the Global X FTSE Greek 20 ETF (GREK) slumped 7% ahead of the U.S. open. Read: Greek assets slammed after debt deadlock

Data: Tuesday's economic data came in below expectations, but the reaction seems to be mostly muted. The Empire State manufacturing moved slightly lower but remained in positive territory in February.

Meanwhile, a gauge of confidence among home builders fell in February to a four-month low but continued to point to a higher level of construction in the months ahead.

Philadelphia Fed President Charles Plosser will speak on monetary policy and the economic outlook at an event in Philadelphia at 12:45 p.m. Eastern Time.

Earnings:Goodyear Tire & Rubber Co.(GT) posted a huge profit jump, thanks to a one-time tax credit that offset currency fluctuation and weaker sales in Europe. Shares jumped accordingly.

Starwood Hotels & Resorts Worldwide Inc.(HOT) said Chief Executive Frits van Paasschen has resigned and will temporarily be replaced by director Adam Aron. Shares rose sharply.

Cablevision Systems Corp. (CVC), was the top decliner amid negative analyst comments, including a MoffettNathanson downgrade to neutral from buy for big cable stocks that cited concerns such as cord cutting, according to a Hollywood Reporter story.

Follow more of the day's big stock moves here.

Other markets: European markets were mostly lower, weighed by those Greece worries. In Asia, most indexes closed higher, with the Shanghai Composite Index extending its winning streak to seven sessions.

In commodity markets, prices fell across the board, despite the weaker dollar. The ICE dollar index (DXY) moved slightly lower. Gold futures fell 1.2% to $1,212.20 an ounce, while oil (CLH5) prices fell 2.4% to $51.50 a barrel.

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