Challenger, Gray & Christmas, Inc. reported job layoffs in August dropped to 88,736 from 103,312 in July. But layoffs in the months of May-August reached 377,325, the highest summer total since 2002.

By close Wednesday, the Dow Jones industrial average gained 0.14 percent on the day, up 15.96 points to 11,532.88. The Standard and Poor's 500 fell 2.60, or 0.2 percent, to 1,274.98. The Nasdaq composite index lost 15.51 points, or 0.66 percent, to 2,333.73.

On the New York Stock Exchange, 1,614 stocks advanced and 1,491 declined on a volume of 1.2 billion shares traded.

The U.S. dollar was mixed Wednesday. The euro fell to $1.4492 from Tuesday's $1.4506. The dollar traded at 108.27 yen, up from Tuesday's 108.71 yen.

The 10-year Treasury note was up 9/32, yielding 3.703 percent.

In Tokyo, the Nikkei 225 closed up 80.12 points, or 0.64 percent, at 12,689.59.

The FTSE 100 index in London lost 121.00 points to 5,499.70, off 2.15 percent.

Beige Book paints a gray economic picture WASHINGTON, Sept. 3 (UPI) -- The U.S. Federal Reserve's Beige Book report released Wednesday describes the national economy as slow and subdued.

The Federal Reserve Bank of Kansas City reported "slight improvement" in business conditions, while New York and Boston "noted signs of stabilization," the report said.

But, business conditions in much of the United states remains lethargic.

Consumer spending, which drives two-thirds of the U.S. economy, was "reported to be slow in most Districts," the report said. Manufacturing declined in most districts, but "improved somewhat" in Minneapolis and Kansas City.

Much of the nation reports continued price pressures from rising food and energy costs, but easing of industrial commodity and energy products was reported, the Beige Book report said. Wage inflation was described as "moderate" while hiring has slowed.

On the bright side, "several Districts noted continued strong demand for workers in the energy sector," the report said.

The critical residential real estate sector remains weak "in all Districts, except Kansas City," with demand for housing "still moving down in Boston, New York, Chicago, St. Louis, and San Francisco," the report said.

Residential real estate sales were reported as "sluggish" in Philadelphia, Cleveland, Richmond, Atlanta, Minneapolis, and Dallas.

State Farm expresses alarm at LPGA policy BLOOMINGTON, Ill., Sept. 3 (UPI) -- A new English proficiency policy at the U.S. Ladies Professional Golf Association has shaken at least one key tour sponsor, company officials said.

Insurance giant State Farm has asked the LPGA to reconsider the policy, which requires "effective communication in English on the part of all our Tour members," Advertising Age reported Wednesday.

"It's something we are dumbfounded by," State Farm media relations specialist Kip Biggs said. The insurer has "strongly encouraged them to take another look at this," Biggs said, adding, "it's something we'll take into account when we look at either re-upping or walking away," from the LPGA.

The LPGA released a statement Tuesday saying "it is imperative for future success of the LPGA … that our members effectively communicate in English at tournaments inside the United States."

But some questioned the policy as possibly racist, Advertising Age reported. The LPGA currently includes 478 tour members, including 121 international players from 26 countries, the report said.

A second sponsor, Choice Hotels International, also said they would "closely monitor LPGA news and announcements" as the LPGA moves to ratify the new policy, spokesman David Peikin said.

Retail sales up sightly in week WASHINGTON, Sept. 3 (UPI) -- Retail sales in the United States rose slightly in the week ending Aug. 30, the International Council of Shopping Centers-USB reported Wednesday.

Sales were up 0.1 percent for the second consecutive week, the report said.

Around the country, "consumers ... were greeted with further receding gasoline prices over the last week and a cooler week than during the same time of the prior year," the report said.

Retail sales gained 2.2 percent over the same week of 2007, ICSC said.

Business picked up in specialty apparel and in electronic and office supply stores, the report said.

At $3.68 per gallon, the average price of unleaded regular gasoline remains 31.6 percent above the price from a year ago, but has declined 43.4 cents in the past eight weeks, the report noted.