Stocks Opened Lower after Economic Data

U.S. stocks opened lower on Thursday after economic data showed that consumer spending rose less than expected in May and jobless claims fell slightly last week. The Dow Jones Industrial Average lately fell 70.32 points, or 0.42%, to 16,797.19. The S&P 500 lost 13.88 points, or 0.71%, to 1,945.65. The Nasdaq Composite shed 30.44 points, or 0.70%, to 4,349.31.

Consumers splurged on new cars and trucks in May, but not much else despite another solid month of income gains. And inflation continued its steady march higher. The government said consumer spending climbed 0.2% last month, driven largely by the sale of new autos.

The number of people who applied for U.S. unemployment benefits fell slightly last week and remained near a post-recession low, indicating that the nation’s low pace of layoffs and an upturn in hiring are likely to continue. Initial jobless claims fell by 2,000 to a seasonally adjusted 312,000 in the seven days ended June 21, the Labor Department said Thursday.

Lennar Corp. said its fiscal second-quarter earnings edged up slightly as a higher tax provision in the latest quarter masked an increase in revenue. Lennar posted earnings of $137.7 million, up slightly from $137.4 million in the prior-year period. On a per-share basis, earnings were flat at 61 cents.