(MENAFN– ecpulse)
U.S. stocks opened little changed at the final trading day of the month, after government data showed consumer spending rose below expectations last month, while uncertainty over a possible military strike against Syria, led by the U.S. and its allies is still roaming.
The Dow Jones Industrial Average was 0.07% lower at 14828.20 points. The index was poised for a 4.43% loss in August.
The S&P 500 index lost 0.05% to 1637.29 points. The index is headed for a monthly loss of 2.75%.
The NASDAQ composite dropped 0.32% to 3608.46 points. The index so far has slipped 0.67% this month.
Data as of 10:00 a.m. ET
Benchmark stock index have gained in the past two sessions as concerns eased over a possible military action against Bashar al-Assad’s regime in Syria over allegations of the use of prohibited chemical weapons.
U.S.-led efforts to punish Damascus over the use of chemical weapons against civilians were dealt a blow as Britain said it will not join any military action against Syria after a parliamentary defeat of a government motion on the issue.
However, U.S. Defense Secretary Chuck Hagel said even after the rejection of military action by the British parliament, the U.S. will continue to seek out an international coalition to act together on Syria and France said it still backed action.
Mixed data
Data today showed consumer spending in the U.S. rose less than forecast in July, indicating further job gains are needed to sustain household purchases.
Consumer spending, which accounts for about 70 percent of the economy, rose 0.1 percent after a revised 0.6 percent increase the prior month that was larger than previously estimated, the Commerce Department reported today. Analysts had expected a gain of 0.3 percent.
The MNI Chicago Report business barometer rose to 53 in August from a reading of 52.3 the prior month. Figures that are above 50 signal expansion. The median forecast was 53.
Also, the University of Michigan’s consumer sentiment index rose to 82.1 in August, topping forecasts after it was initially estimated at 80.0. The median projection called 80.5.
Growing speculation over the Federal Reserve’s monetary stimulus and when will it be reduced has weighed in stock markets, and especially after the minutes of the central bank’s latest policy meeting showed policy makers in favor of scaling back the stimulus if the economy improves as estimated.
The next policy meeting will be on September 17-18.
Investors are also watching the political debate over the nearing limit on federal spending. The U.S. government is expected to exhaust its ability to borrow funds in mid-October, when it will hit the statutory debt limit, according to an estimate from the Treasury Department.
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