The Dow Jones industrial average fell 7.79 points, or 0.08 percent, to end at 9,783.92. The Standard & Poor’s 500 Index was down 3.27 points, or 0.31 percent, at 1,065.49. The benchmark S&P 500 now up 58 percent since its early March lows. The Nasdaq Composite Index was down 6.40 points, or 0.30 percent, at 2,126.75. U.S. stocks slipped on concern recent gains were overextended, despite a good round of solid economic data. European stock index futures pointed to a lower open on Friday, with investors poised to cash in some of the recent strong gains after Wall Street dipped and commodity prices edged lower. The benchmark Nikkei ended down 73.26 points at 10,370.9. Japan’s Nikkei stock average slipped 0.7 percent on Friday, with financials showing the largest drop on the index. The broader Topix ended flat at 939.44.

U.S. housing starts and permits increased to their highest level since November. The number of U.S. workers filing new claims for jobless benefits fell unexpectedly last week. While new jobless claimants fell, the number of new houses being built in the US rose in August to the highest level since November. The commerce department said housing starts rose 1.5 per cent to a seasonally adjusted annual rate of 598,000. European Union leaders met in Brussels last night in an attempt to create a joint approach to curbing bonuses. A senior World Trade Organisation (WTO) official said yesterday, that trade measures of the type imposed by the US on Chinese tyres run the risk of slowing down economic recovery.

Due for release today there is EUR German Producer Prices, EUR Euro-Zone Current Account, GBP Public Finances, GBP Public Sector Net Borrowing.

By Greg Secker