Stronger economic reports lift market
NEW YORK — Investors sent stocks soaring yesterday after getting a boost of confidence from the latest economic reports, which signaled that consumer spending and manufacturing are strengthening, and Warren Buffett's defense of Goldman Sachs.
An agreement by United Airlines to acquire Continental Airlines Inc. also lifted stock prices. Investors see corporate dealmaking as a positive sign for the economy.
The Commerce Department said that personal spending rose 0.6 percent in March, the biggest increase in five months. However, personal income rose just 0.3 percent. This was in line with analysts' expectations but showed that consumers were pulling money from their savings.