(MENAFN- ProactiveInvestors) U.S. stocks jumped Monday as investors brushed aside generally sluggish economic reports including consumer spending falling for the second straight month in January.
As of noon in New York the Dow Jones Industrial Average was up 110 points at 18242 surpassing its previous closing record while the Nasdaq rose 33 points to 4997 hitting the 5000 mark for the first time in 15 years earlier in the session. The S&P 500 was up by 8 points at 2112.
Investors started off the month of March on an upbeat note after all major U.S. averages scored big gains for February.
Kicking off the data deluge the government reported personal income in January rose a smaller-than-anticipated 0.3% while consumer spending fell 0.2% slightly more than expected. Core inflation rose 0.1% month-on-month in line with estimates.
Later in the morning the February Markit manufacturing purchasing managers index was revised up from an initial 54.3 reading to 55.1. This was followed by the closely-watched ISM manufacturing index which fell to 52.9 in February from 53.5 in January the fourth decline in a row but in line with estimates.
Meanwhile January construction spending unexpectedly fell by 1.1%. Construction spending was expected to have climbed by 0.3%.
U.S. markets were impacted positively by Asian stocks on Monday after China cut interest rates by a quarter percentage point over the weekend while a survey showed HSBC's PMI climbing from 49.7 to 50.7 in February the strongest level since July.
European markets finished mostly lower today even as data showed consumer prices fell for the third straight month in February giving some encouragement to ECB policy makers as they prepare to meet in Cyprus on Wednesday and Thursday for their new stimulus program. Meanwhile the unemployment rate across the eurozone fell to 11.2% in January its lowest since April 2012.
In corporate activity (NYSE:BRK.A) () reported lower earnings for its fourth quarter as the company released results in conjunction with Warren Buffett's 50th annual letter to shareholders.
Sotheby’s () shares dropped more than 5% Monday after the auction company missed profit expectations.
NXP Semiconductors (NASDAQ:NXPI) has agreed to buy Freescale Semiconductor (NYSE:FSL) in an $11.8 billion cash and share deal which is expected to close in the second half of this year.
Shares of () fell after announcing an agreement to be acquired by Hewlett-Packard () in a deal valued at $3 billion.
Shares of Lumber Liquidators Holdings (NYSE:LL) fell 26% in premarket action after a report last night said the company sold flooring with higher levels of formaldehyde than permitted under California's health and safety standards. Trading of the shares were halted pending the company's statement which said the 60 Minutes report was based on improper tests.
Oil prices reversed earlier losses as traders weighed U.S. and China data with the contract for April delivery last up 73 cents to $50.49 a barrel in New York. Gold futures dropped $5 to $1207 an ounce as U.S. equities climbed.
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