Stocks down, oil rallies as storm nears

New York -- U.S. stock indexes edged lower Friday as oil prices climbed and Tropical Storm Gustav bore closer to the Gulf of Mexico.

The Dow Jones industrial average got the final session before the Labor Day weekend off to a slow start, dropping 29.63 points, or 0.25 percent, to 11.685.55 in early trading.

The Nasdaq composite was down 20.26 points, or 0.84 percent, to 2,391.38. The Standard and Poor's 500 was down 4.59 points, or 0.35 percent, to 1,296.09.

Crude oil prices rebounded by adding $1.23, or 1.06 percent, to $116.82 a barrel. On the Gulf of Mexico, meanwhile, oil facilities were making ready for Gustav, expected in the gulf this weekend as a full-blown hurricane. Many companies moved workers out.

Consumer spending slowed in July but personal consumption went up, the U.S. Commerce Department said. Personal consumption increased by 0.2 percent and spending a up 0.6 percent.

The dollar fell against rivals, notably the Japanese yen.

Overseas, Tokyo's Nikkei 225 closed up 304.63 a 13,072.87.

Copyright 2008 by United Press International.