New Version of the GPL Is Finalized Launch Date Set for AMD's 'Barcelona' Internet Radio Hears Sound of Defeat Web 2.0 and Business Collaboration Microsoft's Last, Best Hope in Search Stocks opened higher Friday as investors digested a government report that showed consumers boosted spending in May as their incomes grew solidly. The Commerce Department reported before the opening bell that consumer spending rose by 0.
5 percent for the second month in a row. Incomes, which fuel future spending, rebounded in May by 0.4 percent after falling 0.
2 percent in April. The latest snapshot of consumer behavior was a bit weaker than economists were expecting. However, it did show that consumers were shrugging off higher gasoline prices and showed the economy isn't growing too fast.
This fits well with the Federal Reserve's decision on Thursday to keep interest rates on hold. Policymakers said the economy appeared to be growing at a "moderate" pace but offered a cautious reading on inflation. The Chicago Purchasing Manager's Index -- a precursor to the Institute for Supply Management's manufacturing index, scheduled to be released Monday -- also encouraged investors.
The report indicated a slight decline in Midwest manufacturing growth in June versus May, but the dip was smaller than predicted. The report's prices-paid index also decreased, a sign that inflation is easing. In morning trading, the Dow Jones industrial average rose 52.
11, or 0.39 percent, to 13,474.39.
The Standard Poor's 500 index gained 7.94, or 0.53 percent, to 1,513.
65, and the Nasdaq composite index was up 12.52, or 0.48 percent, at 2,620.
89. Bonds rose, with the yield on the benchmark 10-year Treasury note falling to 5.06 percent from 5.
11 percent late Thursday. will be in focus as the company releases its iPhone to the public. The gadget, which combines the functions of a cell phone, iPod and wireless Web browser, will go on sale in the United States at Apple and AT T stores at 6 p.
m. Friday in each time zone. Apple rose $1.
22 to $121.78.
