US STOCKS-Wall St edges lower; Obama statement eyed

* Confidence in U.S. economy sags before week’s key data

* Banks lower ahead of Obama economy statement

* Intel to buy Infineon’s wireless unit

* Indexes off: Dow, S&P 500, Nasdaq 0.7

* For up-to-the-minute market news see [STXNEWS/US]
(Updates to late morning)

By Edward Krudy

NEW YORK, Aug 30 (BestGrowthStock) – U.S. stocks (Read more about the stock market today. ) dipped on Monday
as confidence about the economy sagged and investors were
cautious ahead of several key reports coming this week.

Investors were eyeing comments on the economy by President
Barack Obama, set for 12:30 p.m. (1630 GMT). Before the speech,
bank stocks took the brunt of selling. JP Morgan (JPM.N: ) and
Citigroup (C.N: ) traded down around 1 percent.

Consumer spending rose at the strongest pace in four months
in July, but the 0.2 percent gain in personal incomes reported
by the government on Monday was smaller than forecast.

Investors also were hesitant ahead of more closely watched
data on manufacturing, services and August non-farm payrolls
due later in the week.

“Equity markets are going to be a little bit defensive this
week as the economic data is likely going to show more slowing
in the economy,” said John Brady, senior vice president at MF
Global in Chicago.

The Dow Jones industrial average (.DJI: ) dropped 70 points,
or 0.7 percent, to 10,080. The Standard & Poor’s 500 Index
(.SPX: ) dropped 8 points, or 0.7 percent, to 1,057. The Nasdaq
Composite Index (.IXIC: ) dropped 15 points, or 0.7 percent, to

The Dow and the S&P 500 racked up three weeks of losses at
the end of last week although the market is showing resilience
around a key technical level.

The S&P 500 fell to and then rebounded from the 1,040
support level twice during the past week, both times ending the
day with gains. The level has consistently attracted buyers
over the past 10 months and was significantly breached only
once during a brief stint in July.

The financial sector has been the subject of intense
scrutiny from Washington recently and investors are nervous
ahead of potential new policy announcements.

However, Obama’s statement is likely aimed at reminding
Americans that he is still focused on fixing the economy, the
top issue in the Nov. 2 congressional elections.

Citigroup fell 1.1 percent to $3.72, while JP Morgan fell
1.1 percent to $36.19. The BKW Bank Index lost 1.34 percent.

A burst of M&A action was not enough to turn stocks
positive despite a brief spell around break-even shortly after
the open.

Genzyme Corp (GENZ.O: ) rose 3.7 percent to $70.10 after
France’s Sanofi-Aventis SA (SASY.PA: ) disclosed a cash offer of
$18.5 billion, or $69 per share, to buy the U.S. biotechnology
company. Later, Genzyme broke a five-week silence to reject the
bid. U.S.-listed shares of Sanofi (SNY.N: ) edged up 0.1 percent
to $20.06. For details, see [ID:nLDE67T031]

Intel Corp (INTC.O: ) agreed to buy the wireless unit of
German chipmaker Infineon Technologies AG (IFXGn.DE: ) for $1.4
billion, enabling the U.S. chipmaker to boost its presence in
the smart phone market. Intel shed 1.6 percent to $18.07.

Dell Inc (DELL.O: ) advanced 2.3 percent to $12.16 after
saying it is assessing a bid for data storage company 3PAR Inc
(PAR.N: ) after 3PAR’s board called Hewlett-Packard Co’s (HPQ.N: )
$2 billion offer a “superior proposal.” 3PAR lost 2.6 percent
to $31.61. [ID:nN29138050]

Separately, HP authorized an additional $10 billion in
share repurchases. HP gained 3.1 percent to $39.19.

Cogent Inc (COGT.O: ) surged 20.5 percent to $10.74 after 3M
Co (MMM.N: ) agreed to acquire the maker of fingerprint
identification systems for $943 million, or $10.50 per share.

3M shares dipped 0.8 percent to $80.36 as the top drag on
the Dow.
(Reporting by Edward Krudy; Editing by Kenneth Barry)

US STOCKS-Wall St edges lower; Obama statement eyed