U.S. stock market disheartened by weak spending

Date: Thursday, August 13, 2009

U.S. stock market disheartened by weak spending

The stock market's enthusiasm over the government's "cash for
clunkers" program wanes in the face of data suggesting consumers have
exchanged old cars for
newer models only at the expense of other retail spending.

U.S. RETAIL SALES DROP DESPITE 'CASH FOR CLUNKERS'

U.S. retail sales drop 0.1% in July despite a boost from the government's
cash-for-clunkers subsidy, the Commerce Department reports.

INITIAL JOBLESS CLAIMS RISE 4,000 TO 558,000

First-time claims for state unemployment benefits ticked up 4,000 to
558,000 in the week ending Aug. 8, the Labor Department reports.

JULY IMPORT PRICES FALL AS PETROLEUM DECLINES

Prices of imported goods fell 0.7% in July, the first decrease since
January as petroleum prices declined, the Labor Department estimates.

FED SLOWS PACE OF TREASURY PURCHASES

The Federal Open Market Committee promises again to keep interest rates
exceptionally low 'for an extended period of time,' even as it drew
encouragement from the stronger economic outlook.