U.S. stocks rise on robust consumer spending

U.S. stocks ended higher Friday after a report that U.S. consumer spending have jumped 0.6 percent in April, the fastest in three months.

At the closing bell, the Dow Jones Industrial Average jumped

67.56, or 0.6 percent, to 11,278.61. The Standard & Poor's 500 index rose 7.28, or 0.57 percent, to 1,280.16. The Nasdaq composite index added 12.13, or 0.55 percent, to 2,210.37.

The Commerce Department reported on Friday that consumer spending grew in April at the fastest pace in three months, supported by solid income growth.

Consumer spending jumped 0.6 percent last month, the best showing since a 0.8 percent rise in January, while incomes rose by 0.5 percent, supported by strong wage and salary gains.

However, core inflation, excluding energy and food, was up 2.1 percent in April compared to the same month a year ago. This was the fastest increase in this inflation gauge since a similar 2.1 percent increase for the 12 months ending in March 2005 and was above the Fed's comfort zone for inflation.Consumer spending is closely watched because it accounts for two-thirds of the total U. S. economic activity and retail sales account for about a half of the consumer spending in the country.

World crude oil prices hovered above 71 dollars Thursday amid concerns over a coming active hurricanes season.

Source: Xinhua