Business

Wall Street rises on consumer spending

Trading on the NYSE Image copyright Mary Evans Picture Library

(Close): Wall Street rose slightly on Monday, as a report showed a slight increase in consumer spending in February.

The Dow Jones rose 19.6 points to 17,535.3, while the S&P 500 gained 1.1 points to 2,037.

The technology-based Nasdaq index fell 6.7 points to 4,766.7.

The Commerce Department reported on Monday that consumer spending, which makes up two-thirds of the US economy, rose 0.1% in February.

On Friday, the Commerce Department revised its estimates of US economic growth in the fourth quarter to 1.4% - up from 1.1%.

On Tuesday, Federal Reserve Chair Janet Yellen will speak before the Economic Club of New York. Investors are waiting to hear hints about when the Fed might next raise interest rates.

Starwood shares rose 2% after Anbang increased its offer for the hotel chain to $14bn. Shares in Marriott, which made a $13.4bn offer for the hotel chain last week, rose 3.9%.

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Shares in troubled drug company Valeant fell 7% after its chief executive was called to testify before a US Senate committee.

Music streaming company Pandora fell 12% after it said its founder Tim Westergren, would return as head of the company.

Videogame seller GameStop dropped 2.4% after it projected a slide in store sales for the first quarter.