U.S. Stocks Rise to 18-Month High Amid Consumer Spending Growth and European Confidence Improvement

Strategic Insights -

The U.S. stock market hit an 18-month high as the Dow Jones Industrial Average surged 45.5 points, or 0.4 percent, to 10,895.86, its highest close since September 26, 2008. Consumer spending increased for a fifth consecutive month, with 0.3 percent growth in February, matching economist estimates. The rally was also fueled by improved European confidence in the economic outlook and rising crude oil and metals prices.

Key Takeaways:

  • The Dow Jones Industrial Average reached its highest close since September 26, 2008, at 10,895.86.
  • Consumer spending grew 0.3 percent in February, marking the fifth consecutive month of increase.
  • The S&P 500 Index rose 0.6 percent to 1,173.22, led by industrial companies with a 13 percent gain.
  • Energy stocks jumped 1.8 percent, led by Schlumberger Ltd., Exxon Mobil Corp., and Alcoa Inc.
  • The S&P 500 has advanced 5.2 percent since December 31, heading for the biggest first-quarter rally since 1998.

Statistics:

  • The Dow Jones Industrial Average rose 45.5 points, or 0.4 percent, to 10,895.86.
  • The S&P 500 gained 0.6 percent to 1,173.22 at 4:02 p.m. in New York.
  • Consumer spending increased 0.3 percent in February, matching economist estimates.
  • The S&P 500 has advanced 5.2 percent since December 31.
  • Industrial companies led the S&P 500's advance in the first quarter with a 13 percent gain.
  • Energy stocks jumped 1.8 percent, with Schlumberger Ltd., Exxon Mobil Corp., and Alcoa Inc. among the leaders.

Sources:

  • Bloomberg
  • Wells Capital Management
  • Birinyi Associates Inc.
  • Euclid Infotech Pvt. Ltd.