US stocks drop as Greek debt deal stumbles

US stocks have dropped on opening as the Greek debt deal faced new domestic political problems and Chinese trade data showed the country's economy slowing.

Five minutes into trade on Friday, the Dow Jones Industrial Average was down 112.54 points (0.87 per cent) at 12,777.92.

The broad-based S&P 500 fell 12.63 (0.93 per cent) to 1,339.32, while the Nasdaq Composite dropped 27.67 (0.95 per cent) to 2,899.56.

Cracks in the Greek coalition government and violence on the streets appeared to spell trouble for the country's commitment to an austerity program demanded by lenders preparing a massive new debt restructuring and bailout program for the country.

Meanwhile, a fall in China's imports and exports in January, while distorted by the lunar new year holiday, added to mounting evidence that the world's second-largest economy was slowing as the eurozone crisis and weakness in the United States hurt demand for Chinese products.

"The primary concern for the market this morning is concentrated on the Greek debt situation as unions there take to the streets and EU finance ministers demand even more austerity cuts," said The Hightower Report.

"This comes in contrast to yesterday's tone, with the market factoring in an agreement."

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