Stocks Closed Mostly Higher, Led by Consumer Companies

U.S. stocks closed mostly higher on Monday, led by gains in consumer companies. The Dow industrial Average rose 19.66 points, or 0.11%, to 17,535.39. The S&P 500 gained 1.11 points, or 0.05%, to 2,037.05. The Nasdaq Composite shed 6.72 points, or 0.14%, to 4,766.79.

U.S. consumer spending barely rose in February and inflation retreated, suggesting the Federal Reserve could remain cautious about raising interest rates this year even as the labor market rapidly tightens. Consumer spending edged up 0.1 percent as households cut back on goods purchases after a downwardly revised 0.1 percent gain in January.

Contracts to purchase previously owned homes rebounded more than forecast in February as sales picked up in most of the U.S., a good sign as the spring-selling season approaches.The pending home sales index climbed 3.5 percent, the Washington- based National Association of Realtors said Monday.

U.S. government bonds strengthened on Monday as lower oil prices and concerns over the U.S. economic outlook stoked demand for haven assets. In late afternoon trading, the yield on the benchmark 10-year Treasury note was 1.870%, compared with 1.902% on Thursday.
California Governor Jerry Brown said on Monday he had reached a deal with top legislators and labor leaders to gradually raise the minimum wage to$15, the latest in a wave of minimum wage increases at the state level following a push by Democrats.