Stocks slip lower as investors weigh spending
NEW YORK -- August was tough on the stock market. Now, investors face an even scarier September.
Disappointing news on consumer spending helped pull stocks lower Friday in a quiet end to the market's worst month in more than a year.
The Standard & Poor's 500 index closed August with a loss of 3.1 percent while the Dow Jones industrial average lost 4.4 percent. Both had their biggest one-month drop since May 2012.
Before the market opened Friday, the government reported that Americans' income and spending both increased just 0.1 percent in July. The scant rise suggested that economic growth is off to a weak start in the second half of the year. It followed other reports showing steep drops in new-home sales and orders for long-lasting manufactured goods in July.
Friday, the Dow Jones industrial fell 30.64 points, or 0.2 percent, to close at 14,810.31, and the Nasdaq composite dropped 30.43 points, or 0.8 percent, to 3,589.87.
Many investors say the recent slide is hardly a surprise after the stock market had such a strong run. The S&P 500 is still up 14.5 percent this year.