NEW YORK (AP) — Stocks declined unevenly in early trading today after the government said personal incomes fell last month by the largest amount in nearly three years while consumer spending slowed. A disappointing profit report from computer maker Dell Inc. weighed on technology stocks.

Investors are also charting the path of Tropical Storm Gustav as it heads toward the Gulf of Mexico and its oil rigs and refineries.

Stocks showed little reaction to an improvement in the Reuters/University of Michigan reading on consumer sentiment or to an index of Midwestern business activity, which signaled growth.

The Commerce Department said personal incomes fell by 0.7 percent in July — well beyond the drop of 0.1 percent that analysts polled by Thomson IFR had predicted on average. That reflects the waning impact of tax rebate checks that Americans received this spring.

As expected, the government also said consumer spending rose a modest 0.2 percent. That was below the 0.6 percent increase seen in June and, accounting for rising prices, spending actually fell by 0.4 percent in July.

Wall Street has been particularly concerned about Americans' ability to help the economy grow, since rising prices for gas and food have strapped many household budgets.

Meanwhile, investors were watching Gustav heading toward the Gulf of Mexico and its oil installations.

Light, sweet crude oil rose $2.41 to $118 per barrel on the New York Mercantile Exchange. So far, oil trading has been fairly orderly as the storm progresses, although there is concern about damage from Gustav or a disruption in the flow of gasoline and other fuel from Gulf Coast refineries.

In the first hour of trading, the Dow Jones industrial average fell 66.44, or 0.57 percent, to 11,648.74.

Broader stock indicators also fell. The Standard & Poor's 500 index fell 7.05, or 0.54 percent, to 1,293.63. The technology-heavy Nasdaq composite index fell 28.82, or 1.20 percent, to 2,382.82.

Dell fell $3.09, or 12 percent, to $22.12 after the company's profit margins came in well below what analysts had been expecting.

In other economic news, the Reuters/University of Michigan reading on consumer sentiment rose to 63 for August from 61.2 in July, its highest level in five months.

The Chicago Purchasing Managers' index, which measures business conditions across Illinois, Michigan and Indiana, rose to 57.9 from 50.8 in July.

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