By Anora Mahmudova and Victor Reklaitis, MarketWatch

Consumer spending leaps in April; house prices jump in March

U.S. stocks posted marginal gains on Tuesday as investors assessed stronger-than-expected economic reports and higher oil prices.

The upbeat data came after Federal Reserve Chairwoman Janet Yellen (http://blogs.marketwatch.com/capitolreport/2016/05/27/live-blog-and-video-of-janet-yellen-interview/) said Friday that an interest-rate rise in the coming months is probably appropriate.

The main indexes are on track to end the month modestly higher, posting positive returns for the third consecutive month.

The S&P 500 was up 2 points, or 0.1%, to 2,100. The Dow Jones Industrial Average slipped 11 points, or less than 0.1%, to 17,862. Meanwhile, the Nasdaq Composite advanced 11 points, or 0.2%, to 4,944.

"Markets adjusted well to Janet Yellen's comments and expect a rate increase maybe in July, after the U.K votes whether to remain in the European Union or not," said Diane Jaffee, senior portfolio manager at TCW.

"The labor market remains robust and preliminary numbers from other labor reports such as JOLTS or weekly jobless claims point to increasing confidence among workers," Jaffee said, adding that the ability of the labor data to shrug off the Verizon strike was telling. Verizon workers are set to return to work Wednesday after reaching a tentative deal that ends a strike that began in April.

However, investors are avoiding big bets ahead of key economic releases later this week. The European Central Bank is expected to leave policy unchanged on Thursday. On the same day, the Organization of the Petroleum Exporting Countries is meeting and the monthly U.S. jobs report is due on Friday.

See:Why the May jobs report won't reflect a speedier economy (http://www.marketwatch.com/story/why-may-jobs-report-wont-reflect-speedier-economy-2016-05-29)

Read:The window for stock-market bears is closing rather quickly (http://www.marketwatch.com/story/why-the-window-for-stock-market-bears-is-closing-rather-quickly-in-one-chart-2016-05-31)

Other markets:Oil futures (http://www.marketwatch.com/story/oil-prices-hold-tight-as-investors-look-ahead-to-opec-meeting-2016-05-31) traded higher, but European stocks were slightly lower. Asian markets closed mostly up, with Chinese stocks boosted by optimism that index provider MSCI soon could include them (http://www.marketwatch.com/story/china-stocks-see-biggest-one-day-gain-on-msci-speculation-2016-05-31) in an influential global benchmark.

Gold futures lost ground, as a key dollar index (http://www.marketwatch.com/story/dollar-marooned-vs-yen-as-investors-wait-for-us-data-2016-05-31) inched higher, helped by Yellen's comments on Friday.

Economic news:Consumer spending leapt (http://www.marketwatch.com/story/consumers-boost-spending-in-april-by-most-in-nearly-seven-years-2016-05-31) 1% in April to mark the biggest gain in almost seven years, as Americans splurged on new cars and trucks. Higher gas prices also contributed.

Incomes rose by 0.4% for the third time in the first four months of 2016. The savings rate in April fell to 5.4% last month after hitting a four-year high in March. The PCE index, the Federal Reserve's preferred inflation barometer, rose 1.1% in the 12 months ended in April. That's up from 0.8% in the prior month.

U.S. house prices jumped 0.9% in March, according to a price gauge released Tuesday.

Check out:

St. Louis Fed President James Bullard said Monday he's reserving judgment on rate increases (http://www.marketwatch.com/story/feds-bullard-monetary-policy-has-little-effect-on-employment-2016-05-29) and will digest more data before making a decision next month.

Individual movers: Shares in Medtronic PLC(MDT) rose after the maker of medical devices posted better-than-expected earnings (http://www.marketwatch.com/story/medtronic-beats-profit-and-sales-expectations-2016-05-31) before the open.

Great Plains Energy Inc.(GXP) on Tuesday said it agreed to buy (http://www.wsj.com/articles/great-plains-energy-to-buy-westar-energy-for-8-6-billion-1464691927)Westar Energy Inc.(WR) for $8.6 billion, marking a big consolidation in the utilities sector (XLU).

In merger news in the drug industry, Jazz Pharmaceuticals PLC(JAZZ) agreed to buy Celator Pharmaceuticals Inc.(CPXX) in a $1.5 billion deal (http://www.marketwatch.com/story/jazz-pharmaceuticals-to-buy-celator-for-about-15-bln-2016-05-31).

StemCells Inc.(STEM) shares plunged 75% announcing plans to wind down operations (http://www.marketwatch.com/story/stemcells-plans-to-wind-down-company-after-it-runs-out-of-money-2016-05-31).(STEM)

 

(END) Dow Jones Newswires

May 31, 2016 10:14 ET (14:14 GMT)

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