U.S. stocks mixed on grim economic data

NEW YORK, Feb. 2 (Chinese media) --

U.S. stocks ended mixed Monday on grim economic data from consumer spending and

manufacturing.

Traders work on the floor of the New

York Stock Exchange, Feb. 2, 2009. The SP 500 and Dow fell on Monday

as uncertainty over the future of the banking sector persisted and

investors fretted over a lackluster earnings season and warnings of more

weakness to come. (Chinese media/Reuters Photo)
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The stocks tumbled after the U.S. Commerce Department

reported personal consumption spending dropped by 1 percent in December, which

was worse than the 0.9 percent decline economists had expected. Moreover,

incomes fell for a third straight month while the U.S. savings rates rose to the

highest level since May.

The Commerce Department also reported that total

construction spending dropped by 1.4 percent in December, slightly worse than

the 1.2 percent decline economists expected.

The market sentiment was somehow eased after the

Institute for Supply Management said its index of factory activity improved from

last month's 32.9 to 35.6 in January, better than the average 32 economist had

expected.

Financials remain weak as the U.S. government's "bad

bank" plan was reportedly delayed due to large spending.

The Dow Jones industrial average was down 64.27 points, or 0.80percent, at 7,936.59. The Standard Poor's 500 Index dipped 0.67 point, or 0.08 percent, to 825.21. The Nasdaq Composite Index rose18.01 points, or 1.22 percent, to 1,494.43.

Trader Frank Cannarozzo phones in trades

on the floor of the New York Stock Exchange, Feb. 2, 2009. The SP 500

and Dow fell on Monday as uncertainty over the future of the banking

sector persisted and investors fretted over a lackluster earnings season

and warnings of more weakness to come. (Chinese media/Reuters Photo)
Photo

Gallery

Traders work

on the floor of the New York Stock Exchange, February 2, 2009. The SP 500

and Dow fell on Monday as uncertainty over the future of the banking

sector persisted and investors fretted over a lackluster earnings season

and warnings of more weakness to come. (Chinese media/Reuters Photo)
Photo

Gallery