There is a lot going on in Washington DC right now. A new potential Supreme Court justice is going through a confirmation hearing, a major Wall Street reform bill is still being adjusted, and one portion of the Sarbanes-Oxley law (which discusses strict internal audit and reporting procedures for companies) has been struck down as unconstitutional. These events seem to be leaving investors confused about how good a time it might be to buy or sell. As a result, the Dow Jones Industrial Average closed down on Monday after a rocky day. The Dow lost 5.29 points to close at 10,138.52.
Interestingly, European markets ended Monday up while Asian markets were mixed with the Hang Seng as the only market in the green.
The drop in the Dow was especially surprising since the Commerce Department released a report showing that consumer spending, income and savings all rose slightly in May. Although the increases were modest, they exceeded the expectations of economists. While this may indicate some economic improvement the impending changes in legislation and Supreme Court rulings have still left investors cold.
The Nasdaq closed down 2.83 points at 2220.65 and the S&P 500 closed down 2.19 points at 1,074.57.