Stock higher in early trading as Dow looks to extend rally

Stocks rise in early trading

NEW YORK — Stocks are rising in early trading as investors grow more comfortable about a global economic recovery.

The government said Monday that consumer spending rose for the fifth consecutive month in February, matching economists’ expectations. Later this week, investors will get the Labor Department’s monthly employment report, which is expected to show employers added jobs this month.

Jobs and the strength of the consumer are considered keys to a strong, sustained economic recovery.

European markets also rose.

The Dow Jones industrial average is up 44.36, or 0.4 percent, at 10,894.72. The Standard & Poor’s 500 index is up 6.34, or 0.5 percent, at 1,172.93, while the Nasdaq composite index is up 13.15, or 0.6 percent, to 2,408.28.

THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP’s earlier story is below.

NEW YORK (AP) — Stock futures are rising Monday as investors grow more comfortable about a global economic recovery.

Consumer spending rose for the fifth consecutive month in February, matching economists’ expectations, according to a new government report. 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.

Jobs and the strength of the consumer are considered keys to a strong, sustained economic recovery.

European markets rose after a survey showed economic sentiment rose in the 16 countries that use the euro and investors grew more upbeat about Greece’s ability to handle its debt problems.

Greece said Monday it plans to issue a new seven-year bond. It is expected to price the bond in the coming days. 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.

In the U.S., investors are turning their attention this week to a bevy of economic reports that are expected to show continued improvement in the nation’s economy.

Ahead of the opening bell, Dow Jones industrial average futures rose 36, or 0.3 percent, to 10,834. Standard & Poor’s 500 index futures rose 5.20, or 0.5 percent, to 1,168.70, while Nasdaq 100 index futures rose 10.00, or 0.5 percent, to 1,961.75.

The Commerce Department said consumer spending rose 0.3 percent in February, which was in line with economists’ forecasts, according to Thomson Reuters. It was the fifth straight month spending rose, which buoys hopes that consumers are regaining confidence. Consumer spending accounts for the largest portion of economic activity in the country.

The same report said personal income was unchanged last month. Economists had forecast growth of 0.1 percent. Weakness in personal income could keep spending from rising too fast in the coming months.

Consumer spending is tied closely to the jobs market, which will be the focus of investors late in the week. The Labor Department’s monthly employment report due out Friday is expected to show employers added jobs for only the second month since the recession began in late 2007.

Economists predict employers added 190,000 jobs in March, though some of those jobs are tied to temporary hiring for the census. The market will be closed Friday for Good Friday, so investors will have to wait until Monday to make moves after the report.

Confidence among consumers is expected to grow as companies start to regularly add jobs, and that growing confidence should translate into greater spending.

Stocks are trying to bounce back after two mixed days to end last week. On both Thursday and Friday, shares rallied in the morning only to pullback to near flat levels by the end of the day as buying ran out of steam.

There was no clear reason for the retrenchment Friday, though analysts said it was natural for the recent two month rally to slow down a bit. Stocks have been grinding higher nearly everyday in recent weeks on signs that the economy is improving, albeit slowly. The Dow has climbed in 17 of the past 21 trading sessions.

Meanwhile, bond prices fell. The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 3.88 percent from 3.85 percent late Friday.

The dollar was mixed against other currencies. Oil and gold rose.

Overseas, Britain’s FTSE 100 dipped 0.1 percent, Germany’s DAX index rose 0.6 percent, and France’s CAC-40 gained 0.1 percent. Japan’s Nikkei stock average fell 0.1 percent.