Stocks rose Monday after an increase in consumer spending boosted confidence in the economy.The Dow Jones industrial average rose about 45 points in afternoon trading. Broader indexes also climbed.
The Commerce Department said consumer spending rose for the fifth consecutive month in February, matching economists’ expectations.
Job creation and healthy consumer spending are considered keys to a sustained recovery. At the end of the week, investors will get the Labor Department’s monthly employment report, which is expected to show employers added jobs this month for only the second time since the recession began in December 2007.
Meanwhile, easing concern about debt problems in Greece reduced demand for the dollar. The dollar’s decline in turn increased demand for commodities, which become more attractive to foreign investors when the dollar falls since most of them are priced in dollars. Energy and materials stocks including Exxon Mobil Corp. led the market higher.
In the latest news from Greece, the debt-strapped government said it was moving ahead with plans to issue a new seven-year bond. European leaders and the International Monetary Fund agreed last week to provide a safety net should Greece or other countries that use the euro fail to raise money by issuing new debt. Concerns about Greece’s fiscal crisis have been pounding the euro, Europe’s shared currency.
Financial shares were mixed after the Treasury Department said it would start to sell the shares it owns in Citigroup Inc. The government took 7.7 billion Citigroup shares in exchange for $25 billion it gave the bank during the 2008 credit crisis. The planned sale during the next year could result in a profit of more than $7.5 billion.
The stock market has been climbing at a steady pace since early February on expectations that the economy is improving. Many reports still point to a weak economy but indicate that conditions are improving.
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