What began with a steep drop in the stock market ended with a modest decline Thursday. The Dow Jones industrial average lost just 60 points after being down nearly 240 points earlier in the day.

A jump in the number of people applying for jobless benefits and plummeting oil prices drove stocks lower at the market open. By 11 a.m., the Dow was down 234 points. Then came late afternoon reports that Greece may have reached a deal for a new austerity plan. The Dow made up nearly 100 points between 2:45 and 3 p.m. alone.

The Dow finished with a loss of 59.67 points, or 0.5 percent, to 12,050. The Standard & Poor's 500 index, down as many as 24 points, closed down just 3.64, or 0.3 percent, to 1,283.50.

Since late April, reports on manufacturing, retail sales, home sales and other economic indicators have come in weaker than economists anticipated. Europe's debt problems and a slowing growth rate in China have also raised concerns about the global economy. On Wednesday, Federal Reserve Chairman Ben Bernanke said problems plaguing the economy may last longer than previously thought.

Greece's beleaguered government said Thursday it will start taxing minimum-wage earners and encourage local banks to help the state delay debt payments for bonds maturing as late as 2015.

Evangelos Venizelos, the country's new finance minister, also said the government is encouraging a deferment scheme under the so-called "Vienna initiative," signing up private investors to voluntarily renew their debt holdings as they expire.

The next big challenge for Greece is to have parliament approve a new round of austerity measures before getting the vital next batch of loans, worth euro12 billion, out of its euro110 billion rescue fund from eurozone countries and the International Monetary Fund.

Venizelos predicted Thursday that the two-stage vote on June 28 and 30 would be successful, and he met with EU and IMF debt inspectors to discuss details of the new austerity plan worth a total of euro28 billion. The two sides reached broad agreement on the package late Thursday, with discussions on "minor details" left to be concluded Friday, two Greek government officials told The Associated Press on condition of anonymity, in keeping with regulations.

Sour reports Thursday on the number of people who sought unemployment benefits and buyers of new homes illustrate what Federal Reserve Chairman Ben Bernanke acknowledged Wednesday: Many factors weighing on the economy are proving to be more chronic than first imagined.

Applications for unemployment benefits rose to a seasonally adjusted 429,000 last week, the Labor Department said Thursday. It was the biggest jump in a month and marked the 11th straight week that applications have been above 400,000. Elevated unemployment benefit claims signal a worsening job market.

New-home sales fell in May to a seasonally adjusted annual rate of 319,000, the Commerce Department said. That's fewer than half the 700,000 that economists say must be sold to sustain a healthy housing market. Sales of new homes have fallen 18 percent in the two years since the recession ended. Last year was the worst for new-home sales on records dating back half a century.

Stocks tumbled more than 200 points after the weaker data on housing and layoffs were released. It came one day after the Fed lowered its outlook for growth and unemployment for the rest of the year.

But news of an agreement by the 17-country eurozone, the International Monetary Fund and Greece on a new austerity plan sent stocks higher midday, helping the Dow Jones industrial average recover most of its earlier losses. The Dow closed nearly 60 points for the day.

Stocks are opening mixed after European leaders failed to agree on releasing more financial aid to Greece.

In order to get the aid, Greece has to agree to more budget cuts, which has been causing unrest and political upheaval there. The Greek government faces a confidence vote on Tuesday.

If Greece defaults on its debt, it could trigger losses for the banks that hold Greek bonds, and economists worry it could shake the European economy and roil financial markets.

The S&P 500 is down a point in early morning trading at 1,270. The Dow Jones industrial average is also down less than a point at 12,001. The Nasdaq composite index is flat at 2,617.

Nabors Industries Ltd. fell Monday after it said lower-than-expected results in its pressure pumping, U.S. offshore and international businesses has hurt its operating income in the second quarter.

Nabors shares fell 62 cents, or 2.6 percent, to $23.41 in morning trading.

The Bermuda petroleum services company said it expects income before interest and taxes to range between $165 million and $170 million for the quarter. Analysts expected an average of $187 million, according to FactSet.

Nabors also said it expects full-year operating income to approach $900 million. Analysts expected $934.5 million.

Chairman and CEO Gene Isenberg said bad weather affected land-based operations in the U.S., including those covering the Bakken and Marcellus shale deposits. Nabors' international operation has dealt with rig upgrades, recertification efforts and civil unrest that delayed contract awards.

Its U.S. offshore business has been hampered by delays in getting permits, Isenberg said. "This situation is gradually improving, and we anticipate moderate profitability over the balance of the year and a return to more normal circumstances as we enter 2012," he said.