U.S. stocks held most early Monday gains at midday, following data indicating a small increase in personal spending and an uptick in regional manufacturing. Personal incomes didn’t budge and inflation stayed benign.

The Dow Jones Industrial Average was up 42 points, at 10,893 by 1:17 p.m., while the S&P 500 was up 6 points at 1,172, and the Nasdaq rose 9 points to 2,404.

The Commerce Department’s report showed personal spending increased by 0.3% in February, in line with expectations. Consumer spending makes up 70% of gross domestic product, the broad measure of U.S. economic activity.

Meanwhile, personal income was flat compared to the prior month, compared with a 0.1% increase economists had predicted. Private wages and salaries posted a small increase of $2 billion, but proprietors’ income fell.

The saving rate slowed, as did a key gauge of inflation. The core price index for personal consumption expenditures, which excludes volatile food and energy, rose 1.3% compared to February 2009. The Fed checks the index for signs of inflationary pressure within the economy.

The results come ahead of a slew of key data points this week, including the monthly nonfarm payrolls report Friday.

The Dallas Fed manufacturing survey, showed expanded factory activity in March, the fifth consecutive monthly improvement. “Capacity utilization rebounded, with the index rising to 15 in March after falling to 0 in February,” the Fed reporte. “The new orders index also jumped up sharply into positive territory after dipping below zero last month. The indexes for shipments and growth rate of orders also turned positive in March. The business activity and company outlook indexes rebounded into positive territory after they slid below zero in February. After several months of growth in production, there are finally signs that manufacturers have begun to replenish their materials inventories. The index turned positive in March after 18 months of negative readings.” REPORT

Meanwhile, the dollar weakened against the euro. Treasurys were higher, with the 10-year note up 10/32 to yield 3.87%. Crude-oil futures slipped, although gold futures edged up.

Overseas, Greece is looking to raise as much €5 billion from its third syndicated bond offering of the year, coming just four days after the European Union announced a rescue plan in case of a Greek insolvency. This latest bond offering will mark a key test of investor confidence as Greece struggles out of its budget crisis.

American depositary shares of Allied Irish Banks (AIB) tumbled 15% at the open, while American depositary shares of Bank of Ireland (IRE) slipped 5.9% on reports the government will increase their stakes in the lenders as well as the size of the discount the lenders will have to accept for offloading risky assets.

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