U.S. Stocks Mixed on Grim Economic Data

U.S. stocks ended mixed Monday on grim economic data from consumer spending and manufacturing.

The stocks tumbled after the U.S. Commerce Department reported personal consumption spending dropped by 1 percent in December, which was worse than the 0.9 percent decline economists had expected. Moreover, incomes fell for a third straight month while the U.S. savings rates rose to the highest level since May.

The Commerce Department also reported that total construction spending dropped by 1.4 percent in December, slightly worse than the 1.2 percent decline economists expected.

The market sentiment was somehow eased after the Institute for Supply Management said its index of factory activity improved from last month's 32.9 to 35.6 in January, better than the average 32 economist had expected.

Financials remain weak as the U.S. government's "bad bank" plan was reportedly delayed due to large spending.

The Dow Jones industrial average was down 64.27 points, or 0.80percent, at 7,936.59. The Standard & Poor's 500 Index dipped 0.67 point, or 0.08 percent, to 825.21. The Nasdaq Composite Index rose18.01 points, or 1.22 percent, to 1,494.43.