The major averages have climbed well off their worst levels of the day but currently remain firmly in the red. The Dow is down 66.27 points or 0.4% at 16,801.24, the Nasdaq is down 14.45 points or 0.3% at 4,365.31 and the S&P 500 is down 7.35 points or 0.4% at 1,952.18.
The weakness on
The report also showed that real spending, which is adjusted to remove price changes, dipped by 0.1% in May following a 0.2% drop in April.
Following yesterday's report showing a sharp downward revision to the pace of consumer spending growth in the first quarter, the data has raised some questions about the second quarter recovery.
"As a result, first half growth could be down and the year as a whole could be as weak as 1%," he added. "Growth that weak demands a rethink by the Fed and should have investors questioning the 6% year-to-date rise in stocks."
The report also showed a notable acceleration in the pace of consumer price growth, adding to recent worries about inflation.
A separate report from the
Economists had been expecting jobless claims to dip to 310,000 from the 312,000 originally reported for the previous week.
While a majority of the major sectors have moved to the downside on the day, most are showing only modest moves.
Electronic storage stocks are seeing notable weakness, however, with the NYSE Arca Disk Drive Index down by 1.1%.
Semiconductor, trucking, software, and banking stocks are also seeing some weakness in mid-day trading, but selling pressure has waned from earlier in the session.
In overseas trading, stock markets across the
Meanwhile, the major European markets ended the day mixed. While the
In the bond market, treasuries are moving notably higher, extending a recent uptrend. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 4.1 basis points at 2.518%.
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