U.S. stocks eye more records on consumer-spending

U.S. stocks eye more records on consumer-spending gains
NEW YORK (MarketWatch) — U.S. stocks rose Monday, sending indexes to record levels, as consumer-spending data reinforced perceptions that the U.S. economic recovery is set to pick up speed in 2014.

The S&P 500 (SNC:SPX) rose 10.62 points, or 0.6%, to 1,828.94. The Dow Jones Industrial Average (DJI JIA) advanced 89.13 points, or 0.6%, to 16,310.59. The Nasdaq Composite (NASDAQ:COMP) jumped 38.52 points, or 0.9%, to 4,143.27, aided by a big rally in its largest component, Apple Inc.

Both the S&P and the Dow industrials closed at record levels on Friday.

Stocks jumped last week when the Federal Reserve decided last week to begin scaling back the size of its monthly bond purchases in January.

Investors “should remember that the Fed is reducing the pace of asset purchases expressly due to a strengthening economy,” said Jerry Webman, chief economist at Oppenheimer Funds, in a note.

“Markets apparently get that now, whereas last May, when the Fed first indicated it was preparing to taper, the reaction was broadly negative at first, though growth-oriented asset classes and subcategories rebounded fairly quickly,” he said.

Meanwhile, data released Monday showed U.S. consumer spending outpaced a modest rise in personal income. Consumer spending rose a seasonally adjusted 0.5% last month, the fastest pace since June and in line with expectations. However personal income only rose 0.2%, less than the 0.4% gain that Wall Street economists had expected.

Separately, consumer sentiment rose this month to the highest level since July, according to University of Michigan/Thomson Reuters consumer-sentiment index, which hit 82.5, mostly in line with expectations. http://www.marketwatch.com/story/us-stocks-ri...atest_news