Stock index futures fell as traders processed news that American personal incomes failed to meet estimates in the last month, as consumers struggle with the weight of their debts and the threat of unemployment. For the first time since January, the government reported, disposable personal income fell after being adjusted for inflation.
Dow Jones Industrial Average index futures slipped 46 points to 10,095, while S&P 500 futures dropped 4.2 points to 1,059.50. Nasdaq 100 index futures actually rose by 0.75 percent at 10:47 a.m. EST, driven by an HP share buyback plan, competing bids between HP and Dell for 3Par and other merger talks.
Other index futures around the globe varied – Brazilian Bovespa index futures dropped 758 points as fears of inflation in South America’s largest economy resurfaced and Petrobras, a partly state-owned oil company, continued to fall. On the other side of the globe, though, Hang Seng index futures jumped 223 points to 20,671.
Given the growing trade deficit in the U.S., particularly with China, it would appear that much of the average American’s shrinking or stagnant income is going to purchase imported goods, rather than those manufactured domestically.
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