U.S. markets start Tuesday with declines

U.S. markets stumbled early Tuesday despite news consumer spending increased by 0.5 percent during the week ending Feb. 23.

The International Council of Shopping Centers-USB weekly report released Tuesday said that shopping -- a leading indicator of consumer confidence -- had inched higher during the week. News wholesale prices in January jumped a full percentage point apparently had a dampening effect.

In midmorning trading, the Dow Jones industrial average lost 31.92 or 0.25 percent to 12,538.30. The Standard & Poor's index also dropped, down 4.19 o4 4.19 percent to 1,367.61. The Nasdaq composite index dropped 6.64 or 0.29 percent to 2,320.84.

The 10-year treasury note rose 7/32, yielding 3.88 percent.

The dollar lost ground as the euro traded at $1.4865, from $1.4825 Monday, while the dollar traded at 107.75 yen, from 108.08 yen Monday.

In Tokyo, the Nikkei average lost 89.85 points Tuesday, closing at 13,824.72 points, down 0.6 percent.

Copyright 2008 by United Press International