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Wall Street rises sharply amid CPI report

(Xinhua)
Updated: 2008-05-19 23:29

NEW YORK  -- Wall Street extended early gains Wednesday, as better-than-expected consumer prices index for April eased some concerns about inflation.

The US Labor Department reported that the consumer price index increased 0.2 percent in April after a 0.3 percent gain in the previous month. The core CPI, which excludes food and energy costs, was up 0.1 percent in April after rising 0.2 percent in March.

The moderate rise in inflation squared investors' concerns on consumers cutting back spending that accounts for about two-thirds of US economic activity.

The market was also buoyed, after the former Federal Reserve Chairman Alan Greenspan predicted that US house prices will bottom in the early part of 2009.

In corporate news, Macy's reported a loss of 59 million US dollars for the first quarter. But the results topped Wall Street' s expectations and the company held onto 2008 guidance, which sent the company's shares up.

The Dow Jones rose 113.75 to 12945.93. Broader indexes also climbed. The Standard & Poor's 500 index increased 11.58 to 1,414. 62; and the Nasdaq rose 21.89 to 2,517.01.