LONDON (ShareCast) - Stocks were broadly lower on a government report that consumers are saving rather than spending but the tech-heavy Nasdaq (NASDAQ: news) bucks the downward trend.
Across
the markets, the Dow Jones (
news) has slumped 41 points to 8430 with the S&P 500 falling 3 points to 917. Nasdaq though is up 2 points to 1831.
The Commerce Department said personal saving as a percentage of income rose to 6.9% in May from 5.6% in April - a 15 year high.
May personal income surged 1.4%, much higher than the 0.3% rise expected and against a 0.5% increase in April. The report also revealed a 0.3% rise in May spending after a 0.1% decline in April, in line with expectations.
Meanwhile, the University of Michigan reported a rise in consumer sentiment in June, against expectations of a flat reading.
US housebuilder KB Home (NYSE: KBH - news) posted a fall in revenues in the second quarter amid continued difficulties in the housing market, but narrowed losses and said negative trends may be moderating.
Revenues totalled $384.5m in, down 40% from $639.1m from the same quarter the previous year. The company delivered 1,761 homes for an average of $216,200 in the second quarter, compared with 2,810 homes at $226,600 previously.
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