U.S. Stocks Drop in August

Written by: Andrea Tse 08/30/13 

www.wickedlocal.com

NEW YORK (TheStreet) -- Major U.S. stock dropped Friday as traders hesitated to make any major moves amid the session's thin volumes heading into the long Labor Day weekend and after tepid reports on U.S. consumers.

The S&P 500 closed down 3.1% for August, the largest monthly drop since the index fell 6.3% in May 2012.

The S&P 500 lost 0.32% to close at 1,632.97. The index dropped 1.8% for the week. The Dow Jones Industrial Average dropped 0.21% to close at 14,810.31. The blue-chip index decreased 1.3% for the five-day trading period. The Nasdaq was off 0.84% to close at 3,589.87. The tech-heavy index slid 1.9% for the week.

Apple shares were down 0.95% to $487.05 as the world awaited Apple's iPhone 5S, reported to come in just 12 days. With plenty of rumors and speculation being bandied about, it's important to separate the truth from the half-truth from the ridiculous, wroteTheStreet's Chris Ciaccia.

The Bureau of Economic Analysis said consumer spending for July increased by a less-than-expected 0.1%, down from an upwardly revised 0.6% in June. The personal income measure rose by a smaller-than-expected 0.1% as well, below the increase of 0.3% from the prior month. Economists, on average, were expecting personal income to rise 0.2% and personal spending to edge up 0.3%.

The final estimate on the University of Michigan Consumer Sentiment Index came in at 82.1, the lowest level in four months in the face of rising interest rates and growing geopolitical tensions. Though the number is up from 80 in the preliminary August report, its remains below July's 85.1. Economists were expecting a print of 80.5.

Concerns about the global effect of a U.S.-led air strike against Syria appeared to have become more muted as the Obama administration looks more and more alone in its proposal to act on evidence of a Syrian government-initiated chemical weapons attack against civilians.