9:50 AM New York – U.S. indexes fell after weekly jobless claims remained unchanged at 374,000 and personal income rose in July. Carlyle Group agreed to purchase DuPont Performance Coatings for $4.9 billion. Darden Restaurants completed acquisition of Yard House USA.
U.S. indexes traded lower in early morning trading after a batch of disappointing economic data leading to worries of a slowdown in economic growth.
Weekly jobless claims remained unchanged at 374,000 and personal income rose in July.
European markets were trending lower as investors were cautious ahead of the meeting of leaders of France and Spain. The latest German unemployment data also highlighted the vulnerability of the labor markets in the strongest economy in the region.
Spanish Prime Minister Mariano Rajoy is scheduled to meet French President Francois Hollande in Madrid today and investors worry that the nation may be forced to ask for a larger bailout as Catalonia became the third region to ask for help.
Asian Economic Data
Japanese retail sales fell a seasonally adjusted 1.5% on a monthly basis in July from the previous month and fell 0.8% from a year ago month, according to a report released by the Ministry of Economy, Trade and Industry.
India revised its GDP data for quarters dating back to 2009 and lowered its latest export data. The statistical agency said fiscal fourth quarter 2009 growth was revised lower to 3.5% from 5.9% and fiscal fourth quarter 2010 was revised higher to 11.2% from 9.4%.
The government defended the revision and said that the latest changes in how industrial production is calculated affected the economic data series.
Home building approvals fell 17.3% from a month ago in July compared to the 1% drop in July, according to a report released by the Australian Bureau of Statistics. Also, new private capital spending increase in the second quarter to June declined to 3.4%.
U.S. Weekly Jobless Claims Flat
Seasonally adjusted initial jobless claims in the week ending August 25 were unchanged at 374,000 from the previous week. The 4-week moving average for claims was 370,250, an increase of 1,500 from the previous week's revised average of 368,750.
U.S. Personal Income Rises
Personal income increased $42.3 billion or 0.3% percent, and disposable personal income increased $39.9 billion or 0.3% in July, according to the Bureau of Economic Analysis.
In June, personal income increased $46.1 billion or 0.3% and disposable personal income increased $37.4 billion or 0.3%.
Real disposable income increased 0.3% in July compared with an increase of 0.2% in June.
U.S. Foreclosure Home Sales Rise
Sales of homes that were in some stage of foreclosure or bank-owned accounted for 23% of U.S. residential sales in the second quarter, up 22% from previous quarter and up 19% from last year, according to RealtyTrac.
The average foreclosure-related sales price in the second quarter was $170,040, an increase of 6% from the previous quarter and was up 7% from the second quarter of 2011.
Carlyle Group to Buy DuPont unit