U.S. Stocks Rise on Upbeat Consumer Data; GameStop Shares Slide

U.S. stocks rose on Monday, following a long holiday weekend.
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U.S. stocks rose on Monday, following a long holiday weekend. Consumer spending for February rose 0.1 percent, matching expectation. Personal income increased 0.2 percent, exceeding Wall Street's forecasts. The personal consumption expenditure price index - the Federal Reserve's preferred inflation gauge - remained unchanged from the prior month, rising 1.7 percent over the past year. The markets were closed on Friday, but fourth quarter GDP was released showing the economy expanded by 1.4 percent, a slight increase from its prior estimate. But an 11.5 percent drop in corporate profits was also reported, a worrisome sign, analysts said. 'There has been this extreme focus on financial engineering - specifically buybacks,' said David Nelson, chief strategist at Belpointe Asset Management, based in Greenwich, Conn. 'That's wonderful to prop up the bottom line, but it comes at a cost.' Shares of GameStop (GME) - Get Report fell following some grim guidance for the rest of the year. The company expects console sales to drop by 10 percent. TheStreet's Scott Gamm reports from Wall Street.