Wall Street mixed as savings rate surges

Wall Street mixed as savings rate surges

NEW YORK, June 26 -- Wall Street retreated and closed mixed Friday, after the U.S. government reported consumer savings outpaced spending.

The U.S. Commerce Department says consumer spending rose 0.3 percent in May, in line with expectations. But the savings rate, which was hovering near zero in early 2008, surged to 6.9 percent, the highest level since December 1993. High saving rate spurred concern that consumer spending will slow.

Energy shares lost ground, as oil prices slipped below 70 dollars a barrel on demand concerns.

In positive news, the University of Michigan reported consumer sentiment increased to 70.8 in June.

Palm Inc. surged 16 percent after the maker of the new Pre phone reported a smaller fourth-quarter loss than analysts estimated.

The Dow Jones fell 34.01, or 0.4 percent, to 8,438.39. Broader indexes moved mixed. The Standard & Poor's 500 index fell 1.36, or0.15 percent, to 918.90; and the Nasdaq rose 8.68, or 0.47 percent, to 1,838.22.
(Xinhua)