While you were sleeping: U.S. consumer lifts stocks

While you were sleeping: U.S. consumer lifts stocks

(BusinessDesk) March 29 - Stocks on Wall Street and in Europe eked out gains amid data that showed the all-important U.S. consumer spent more than expected last month.

Consumer spending climbed 0.7% in the world’s largest economy during February, surpassing estimates of a 0.5% advance. Meanwhile, inflation accelerated at its fastest pace since June 2009.

In afternoon trading on Wall Street, the Dow Jones Industrial Average was up 0.18%, the Standard & Poor’s 500 Index rose 0.16% and the Nasdaq Composite Index edged 0.06% higher.

Gains were limited as Japan’s nuclear disaster and the turmoil in the Middle East and North Africa have left investors worried about committing fresh funds.

"It puts a cap on things for right now, at least until we start to see some earnings come out early in April. That might finally give us a little more upside, assuming that we have good earnings," Janna Sampson, co-chief investment officer at OakBrook Investments LLC in Lisle, Illinois, told Reuters.

"At some point people have got to price in Japan's problems and the problems in the Middle East that we know about."

Telecommunications stocks rose after Robert W. Baird upgraded a number of companies, including AT&T Inc and Verizon Communications Inc.

Eastman Kodak Co also gained, soaring 11.5% as the second-most active stock on the New York Stock Exchange, after the camera company won the latest round in a patent dispute against Apple Inc and Research in Motion Ltd.

The victory may add more than US$1 billion in revenue from royalty payments, Eastman Kodak CEO Antonio Perez told Bloomberg News in an interview.

In Europe, the Stoxx 600 Index gained 0.1%, as five stocks rose for every four that fell.

“The picture still remains very positive in terms of growth and corporate profitability,” Henk Potts, an equity strategist at Barclays Wealth in London, which oversees US$239 billion, told Bloomberg.

The euro strengthened after European Central Bank president Jean-Claude Trichet said inflation rates were durably above the central bank's price stability target, underpinning expectations that the ECB would lift interest rates as early as next month.

The euro advanced 0.11% to US$1.4096.

The U.S. dollar rose 0.05% against a basket of major currencies.

Brent crude futures for May delivery were up 13 cents to US$115.72 a barrel by 1553 GMT.

U.S. May crude futures fell 68 cents to US$104.72 a barrel, swinging between US$103.60 and US$105.76 today.

Spot gold was bid at US$1,422 an ounce at 1604 GMT, against US$1,427.75 late in New York on Friday. Earlier in the session it fell as low as US$1,409.95 an ounce.

U.S. gold futures for April delivery were down US$3.30 at US$1,422.90 per ounce.

(BusinessDesk)

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