U.S. stocks end slightly lower after seesawing

June 29, 2010 10:42 am 

NEW YORK, June 29 — U.S. stocks ended slightly lower on Monday after seesawing earlier even as government report showed consumers bumped up spending last month.

Most stocks traded higher after the Commerce Department said on Monday that consumer purchases rose 0.2 percent in May, exceeding forecast of economists. Meanwhile, personal incomes climbed 0.4 percent and the savings rate increased to the highest level in eight months.

Consumer spending is always closed watched by the market as it accounts for nearly 70 percent of U.S. economic activities and was the engine for a sustainable economic recovery.

Tobacco stocks led the gains in the market after the U.S. Supreme Court refused to review a case between the government and tobacco makers, which was seen as a victory for tobacco companies as it removed any uncertainty that a huge legal verdict could be reinstated against the companies.

However, major indexes fell into negative territory in final minutes of trading, reflecting the lack of confidence about the economy among investors.

The Dow Jones industrial average dipped 5.29 points, or 0.05 percent, to 10,138.52. The Standard & Poor's 500 index slipped 2. 19 points, or 0.20 percent, to 1,074.57 and the Nasdaq edged down 2.83 points, or 0.13 percent, to 2,220.65.

In the currency market, the euro slipped to 1.2287 dollars in late New York trading, exerting downward pressure to both equities and commodities markets.

Crude oil for August delivery fell 0.61 dollars, or 0.8 percent, to settle at 78.25 dollars a barrel on the New York Mercantile Exchange. In London, August Brent crude on the ICE futures exchange settled down 0.53 dollars, to settle at 77.59 dollars a barrel. (PNA/Xinhua)

ALM/ebp

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