Stocks rise on economic newsMajor gauges climb as investors welcome reports that suggest growth is holding up.NEW YORK (CNNMoney.com) -- Stocks inched higher Friday morning after strong reports on personal income and spending, and manufacturing in the Chicago area, reassured investors about the strength of the economy. The Dow Jones industrial average (up 56.63 to 12,405.38, Charts) was up 0.5 percent. The broader S&P 500 (up 4.92 to 1,427.45, Charts) index gained 0.3 percent. The Nasdaq composite (Charts) added 0.4 percent. 
Stocks rose Thursday at the end of a choppy session in which a strong fourth-quarter growth report vied with a spike in oil prices. After a shaky start, stocks resumed the climb Friday. Both consumer spending and personal income rose faster-than-expected in February, according to an early morning report that also showed a bigger-than-expected jump in a key measure of inflation. (Full story). The Chicago purchasing manager's index, a regional manufacturing report, also showed a much larger-than-expected jump. Both reports served to reassure investors that the economy is holding up well, following several weeks of discouraging readings. Reports are due shortly on construction spending and consumer sentiment. In corporate news, Dell (down $0.23 to $23.16, Charts) said late Thursday that an internal audit of its accounting showed errors in its financial controls, which could result in restatements of past quarters. Shares fell 1 percent Friday. (Full story). U.S. light crude oil for May delivery fell 37 cents to $65.66 a barrel in New York Mercantile Exchange trading, giving up earlier gains. Prices have been on the rise recently amid worries about the conflict with Iran, the world's No. 4 exporter. Treasury prices eased, boosting the yield on the 10-year note to about 4.66 percent from 4.64 percent late Thursday. Bond prices and yields move in opposite directions. In currency trading, the dollar rose versus the euro and the yen. |
|
