U.S. stocks and exchange traded funds (ETFs) have been struggling to find a firm direction all morning after mixed news about the economy an earnings were released.
The Commerce Department said that consumer spending rose slightly more than expected in June by 0.4%, primarily boosted by expenditures on nondurable goods. On the other hand, personal incomes declining by 1.3% in June as the effects of one-time government stimulus checks in May wore off.
The National Association of Realtors reported pending home sales in June rose for the fifth straight month. In more good news, for the first time years in five years, home resales have have risen for three straight months, increasing almost 4% in June.
In the earnings arena, GMAC posted a wider second quarter loss of $3.9 billion as it transitioned into an independent bank. Revenue for the lender dropped by 28%, but the bulk of the loss was caused by a $1.6 billion charge related to its mortgage business and a $1.2 billion tax charge on its conversion to a separate company from General Motors (GM).
Swiss bank UBS (UBS) reported its seventh quarterly loss in the past eight quarters. The bank reported a loss of $1.32 billion on further outflows from its private banking business as well as restructuring and impairment charges. The news sent the iShares MSCI Switzerland (EWL) down nearly 1% in morning trading, UBS is 4.1%.
The Dow Jones Industrial Average was relatively flat, up 0.01%, while the S&P 500 followed declining nearly 0.01% and the Nasdaq gave up 0.1% in morning trading.
For more stories on financials, visit our financial category.
Kevin Grewal contributed to this article.
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