Wall Street lower amid global weakness

WALL Street followed global markets lower at the opening on Monday amid more weak US economic news and heightened fears about the banking sector's ability to weather the financial crisis.
In the first exchanges, the Dow Jones Industrial Average fell 92.95 points (1.16 per cent) to 7907.91 after another losing week for US shares.

The Nasdaq composite slipped 12.51 points (0.85 per cent) to 1,463.91 and the broad Standard & Poor's 500 index declined 10.54 points (1.28 per cent) to 815.34.

The market was greeted with more weak US economic data.

The Commerce Department said US consumer spending fell 1.0 per cent in December, a sixth consecutive drop, while incomes rose a sluggish 0.2 per cent.

"Wall Street remains very concerned over the continuing deterioration in the economy, huge questions over the size and structure of the proposed federal economic spending plan that won approval in the House (of Representatives) and the proposed structure of the Treasury plan for use of remaining (bank rescue) funds," said Fred Dickson, analyst at DA Davidson & Co.

"The lack of encouraging news from companies reporting fourth-quarter earnings is just adding another level of concern on the continuing stream of very disturbing economic news. Wall Street desperately needs good news from some front."

Source :news.com.au