North American stocks look weak Friday morning after disappointing data on U.S. personal income and spending.

Early Friday, the U.S. Commerce Department said August personal income decreased at a seasonally adjusted monthly rate of 0.1%, after climbing an unrevised 0.3% in July.

Personal consumption, a measure of consumer spending, dropped by 0.5% — the biggest decline in nearly four years — after a revised 1.2% increase the month before.

Economists had forecast personal income to increase 0.4% and consumer spending to drop 0.2% in August.

Later this morning, the final September reading on consumer sentiment is due from the University of Michigan. A reading of 77.5 is expected, down from the previous 89.1.

Here at home, the Canadian economy advanced 0.2% in July following a 0.3% increase in June, Statistics Canada said today.

Growth in July was concentrated in mining, oil and gas extraction and exploration, retail trade, and transportation industries.

In business news, Rothmans Inc. played down the impact of a Supreme Court ruling against Canada’s tobacco companies Thursday, saying it is just one step in what will be a long, complex legal battle with the B.C. government.

After markets closed yesterday, Royal Bank of Canada said it will take a fourth-quarter charge of US$130 million in the fourth quarter for expected claims from damage caused by hurricanes Katrina and Rita in the U.S. Gulf of Mexico coast states

Toronto stocks closed down Thursday, dragged lower by a poor performance in the information technology sector and a dip in crude prices.

The S&P/TSX composite index finished down 23.76, or 0.22%, to 11,018.50.

Six of the 10 TSX main sub-groups ended higher, but the IT group fell 3.35%.

Research in Motion Inc. dropped $7.25, or 9.39%, to $70 as the company reported customer subscription growth for its Blackberry wireless device appeared to be slowing.

The junior S&P/TSX venture exchange finished up 32.43, or 1.54%, to 2,140.73.

In New York, markets rallied as investors were cheered by a drop in the price of oil and encouraging corporate reports.

The Dow Jones industrial average rose 79.69, or 0.76%, to 10,552.78. S&P500 index rose 10.79, or 0.89%, to 1,227.68, and the Nasdaq composite index climbed 25.82, or 1.22%, to 2,141.22.