"Firms are in a pretty decent shape on their inventories," Stephen Stanley, chief economist at Pierpont Securities LLC in Stamford, Connecticut, said. "Firms are just being very cautious. I don't think there's a lot of visibility on demand going forward, so firms are not willing to assume strong demand six or nine or twelve months out.
"There's something to worry about here," said James Dunigan, chief investment officer for PNC Wealth Management. "We expected there would be flare-ups again in Europe. People were scratching their heads why they didn't show up a little sooner. Certainly as a result of the elections in Greece, the odds of a default and an exit from the euro have increased."