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Market Update

U.S. Stocks Rise on Inflation, Spending and Confidence Data


Author: Nichole Harper
ticker.com
Last Update: 12:06 PM ET March 28 2014

12:00 PM New York – U.S. stocks trimmed weekly losses and tech stocks rebounded. Consumer spending increased for the second month in a row and annual rate of inflation to February month eased to 0.9%. Consumer confidence index dropped less than expected.

U.S. stocks advanced and trimmed weekly loss after tech stocks rebounded and consumer spending rose but tensions between EU-US and Russia deepened.

Consumer Spending Rises, Reported Inflation Below Target

Consumer spending rose 0.3% in February after rising 0.2% in previous month, the Commerce Department said in a report today.

Consumer spending seems to recover after harsh winter months affected the mood and spending in January and December months.

Personal income increased 0.3% in the month matching the gain in January, the second monthly increase in a row.

According to the report, prices increase was moderate. Prices increased 0.9% in February from a year ago month. The annual inflation to the month of January was 1.2% and the inflation has been below 1% since October, well below 2% price target.

Confidence Index Drops

Consumer confidence index eased to 80 in March from 81.6 in February, according to sentiment index tracked by University of Michigan and Thomson Reuters.

S&P 500 index increased 0.7% or 12.33 to 1,861.40 and the Nasdaq Composite Index gained 0.8% or 34.57 to 4,185.90.

European Markets

U.K. insurance companies took a second hit in as many weeks after a local regulator in London opened investigation in 30 million life insurance policies and annuity contracts sold between 1970s and 2000.

In London trading, FTSE 100 index rose 0.4% or 25.58 to 6,613.90 and in Frankfurt the DAX index jumped 1.1% or 105.38 to 9,556.59.

In Paris, CAC 40 index gained 0.5% or 22.13 to 4,401.19.

In London trading, FTSE 100 index rose 0.4% or 25.58 to 6,613.90 and in Frankfurt the DAX index jumped 1.1% or 105.38 to 9,556.59.

In Paris, CAC 40 index gained 0.5% or 22.13 to 4,401.19.

U.S. Stocks in Review

Tech stocks rebounded after a week-long sell-off that dragged Nasdaq Composite Index.

Cognizant Technology Solutions Corp (CTSH) increased 4% to $49.46 after Morgan Stanley lifted its view on the information outsourcing services provider to “overweight.”

PG&E (PCG) declined 4% to $41.95 after the holding company of a California based electric utility that serves 5.2 million customers said in a statement that the company is facing alleged charges from the U.S. Attorney’s office for violating the federal Pipeline Safety Act. The company denied and said charges of explosions and deaths are baseless.

Restoration Hardware Holdings Inc (RH) increased 12.2% to $71.56 after the home-furnishing retailer estimated adjusted current quarter profit between 9 cents and 11 cents. The retailer also estimated annual profit of as much as $2.22 a share compared to $2.18.

Zynga Inc (ZNGA) increased 0.3% to $4.49 after Steve Cohen the owner of SAC Capital Advisors LP increased his stake to 38.7 million shares or 5.3% from 2.2% at the end of 2013. The increase in stake was reported in a regulatory filing yesterday.

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Sources: Data collected by 123jump.com and Ticker.com from company press releases, filings and corporate websites. Market data: BATS Exchange. Inc