11:45 PM New York Ė U.S. market indexes extended losses for the second day in a row. Investors also digested construction spending weakness, rising consumer spending and monthly job creation for the sixth month in a row in July. Markets in Europe eased further and Asian markets reacted to the global market sell-off.
Stocks on Wall Street extended losses for the second day in a row and market indexes across Atlantic registered widespread losses.
Investors also digested construction spending weakness, rising consumer spending and monthly job creation for the sixth month in a row in July.
U.S. economy created 209,000 net new jobs in July, the sixth monthly increase in a row, the Labor Department said today.
Construction spending declined in June, the second monthly decline in a row, after residential, non-residential and government spending fell.
U.S. consumer spending increased 0.4% in June, the fastest monthly increase in a row after an increase of 0.3% in May and 0.1% rise in April, the Commerce Department said today.
S&P 500 index decreased 1.02 to 1,929.62 and the Nasdaq Composite Index declined 1.74 to 4,368.23.
U.S. Construction Spending Declined in June
U.S. construction spending declined June the most in more than three years after residential, commercial and government spending declined. The decline was the largest since a 2.8% in January 2011.
Construction spending declined 1.8% in June after adjusting for seasonal factors from the revised 0.8% increase in May, the Commerce Department reported Friday.
Government spending declined 4% in the month, the largest monthly fall since 6% plunge in March 2002.
Broad housing construction declined 0.3% in month, the second monthly decline in a row. Single family home construction fell 1.4% and apartment construction increased 2.5%. Housing construction from a year ago is still 7.4% higher.
European markets remained weak for the second day in a row and weekly advances were trimmed in the region after rising tensions in the Middle East and growing conflict in Ukraine.
In London trading, FTSE 100 index slipped 0.5% or 38.81 to 6,691.30 and in Frankfurt the DAX index declined 1.6% or 148.96 to 9,258.52.
In Paris, CAC 40 index dropped 0.5% or 23.46 to 4,222.68.
plummeted 7.2% to Ä191.15 after the France-based fourth largest telecom carrier offered $33 a share in cash valued $15 billion for 56.6% controlling stake in T-Mobile US.
The offer is less than Sprintís reported offer of around $40 per share and the two companies are in advanced stage of discussion. Deutsche Telekom, the parent of T-Mobile already rejected the Iliadís offer.
Iliad said the merger will achieve $10 billion in cost savings and did not elaborate how and when that will be reached. Analysts were skeptical of the merger synergy because Iliad does not have a presence in the U.S.
Iliad reported 5.7 million broadband subscribers and 8.6 million wireless subscribers, significantly smaller than nearly 50 million T-Mobile subscriber base.