Dow Falls On Opening, Breaks Through 8,000 Floor
Wall Street opened lower across the board on disappointing personal spending data, as the Dow Jones industrial average broke through the 8,000 floor.
In the first 20 minutes of trading, the Dow is trading down nearly 100 points, or more than 1 percent, at about 7,900.
The S&P 500 is down about 1.1 percent but the Nasdaq is faring relatively well, down only about .5 percent.
Personal spending fell for the sixth straight month, the Commerce Department said this morning, which means more people are saving.
In theory, that's good -- too much spending is what got us where we are right now.
But it's a Faustian bargain: 70 percent of the U.S. GDP is based on consumer spending. When Americans stop buying things, the U.S. economy grinds to a halt. And it takes other economies with it -- South Korea said this morning that exports are down 33 percent from January 2008.
February 2, 2009; 9:55 AM ET
Categories: The Ticker | Tags: Dow Jones, consumer confidence, nasdaq, s&p 500
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