Futures slide on consumer data

AP News
Posted: May 31, 2013 8:58 AM
Futures slide on consumer data

NEW YORK (AP) — Stock futures slumped on the final trading day of May, with new data showing that consumers pulled back from their breakneck spending pace in April.

Dow Jones industrial futures slid 79 points to 15,140. S&P futures gave up 8.3 points to 1,645.30. Nasdaq futures fell 13.25 points to 2,996.75.

The Commerce Department said Friday that consumer spending dropped a seasonally adjusted 0.2 percent in April, the most since last May.

The new numbers show that income was unchanged in April following solid gains in the previous two months. That may mean that the sting of higher taxes, rolled out at the start of the year, may have started to sink in.

Still, the pullback in spending comes after the most rapid increase in two years, between January and March.

The Commerce report Friday was issued against a backdrop in which housing prices are soaring and the employment landscape in the U.S. is improving slowly but steadily.

While futures dipped after the report, they were heading down already following more disquieting news out of Europe.

Unemployment across the 17 European Union countries hit a record 12.2 percent in April, according to Eurostat, the EU statistics office.