Consumer Discretionary Share Rise On Economic Data

NEW YORK (AP) — Shares of consumer discretionary stocks surged on Monday, along with the general market, as economic data seemed to indicate the worst of the recession might be past.

A report from the Institute of Supply Management on U.S. manufacturing showed the sector contracted at a slower rate in May than the previous month. A government report showed U.S. construction spending in April grew by the largest amount in 8 months, and U.S. consumer spending in April fell slightly less than analysts expected.

The market surged on the data and by midday, the Dow Jones Industrial Average was up over 200 points. The S&P 500 Consumer Discretionary Index rose about 8 points, or 4.4 percent.

The index contains a variety of consumer products companies ranging from closeout retailer Big Lots Inc. to luxury handbag maker Coach Inc.

The rise comes ahead of many retailer same-store sales reports, due out Thursday. Same-store sales, or sales in stores open at least one year, are considered a key gauge of a retailer's fiscal health.