The Commerce Department reported that personal spending and income edged higher in June.
Individual income increased by 0.1% after a revised 1.8% jump in May, matching economists expectations. The increase was due in part to the government's economic stimulus plan, which included billions of dollars in rebate checks sent to Americans in May and June.
Personal spending increased by 0.6%, topping the 0.5% increase that economists had expected. When adjusted for inflation, however, individual spending actually fell 0.2% following a 0.3% increase in May.
On the labor front, outplacement firm Challenger said the nation's employers announced 26% more planned job cuts in July when compared to June.
The price of crude fell as traders continued to worry about weakening U.S. demand. Light, sweet crude for September delivery lost $1.03 to 124.08 a barrel in New York.