Stocks fall after consumer spending remains weak

NEW YORK (AP) - Stocks fell Monday after a report signaled that consumers remain cautious about spending.

The Dow Jones industrial average fell about 30 points in morning trading. Broader indexes also fell. Treasury prices rose and drove down interest rates as investors remained concerned about the economy.

The modest drop in stocks comes ahead of a big week of economic data, including the government's monthly jobs report on Friday. Investors will want to see private sector job growth because any signs of hiring could add confidence that the economy is improving.

A report Monday showed that consumers are still nervous about spending while unemployment remains high. The government said consumer spending rose 0.2 percent last month, just above the 0.1 percent growth forecast by economists polled by Thomson Reuters.

Growth was slow, although personal income rose 0.4 percent. A bigger jump in income than spending means consumers are still unsure about their financial position and choosing to save their money. Weak spending could continue to hamper growth because consumer spending is the biggest driver of the economy.

The tepid recovery has led some leaders to push for new stimulus measures to bolster growth, though a jump in government spending would make it difficult to control deficits.

In the first hour of trading, the Dow Jones industrial average fell 29.17, or 0.3 percent, to 10,114.56. The broader Standard & Poor's 500 index fell 4.41, or 0.4 percent, to 1,072.35. The Nasdaq composite index fell 11.20, or 0.5 percent, to 2,212.28.