Dow at highest level since late 2007

U.S. stocks rose Tuesday, propelling the Dow Jones Industrial Average to its highest close since late 2007, after a report indicated U.S. manufacturing expanded in April, offsetting concern about the economic recovery.

The Dow Jones Industrial Average DJIA rose 65.69 points, or 0.5%, to 13,279.32.

The S&P 500 SPX added 7.91 points, or 0.6%, to 1,405.82.

The Nasdaq Composite COMP gained 4.08 points, or 0.1%, to 3,050.44

Consumer sentiment rose in April

The final reading for consumer sentiment in April rose to 76.4 from 76.2 in March, according to reports on a gauge released Friday by the University of Michigan/Thomson Reuters.

High gas prices and stock-market volatility have been weighing on consumers.

The sentiment gauge, which covers how consumers view their personal finances as well as business and buying conditions, averaged about 87 in the year before the most recent recession. Economists watch sentiment data to get a feel for the direction of consumer spending.

U.S. home prices at lowest level in decade

U.S. home prices continued to fall sharply in February to hit the worst level in nearly a decade, ccording to a closely followed index released Tuesday. The S&P/Case-Shiller 20-city composite is at its lowest level since October 2002.

The index fell 0.8% compared to January levels to take the year-on-year drop to 3.5%. Of the 20 cities measured, 16 had negative readings and only three showed gains.

The decline may be due to the typical pattern of diminished interest during the winter and heightened interest in housing during the spring and summer, as prices rose 0.2% on a seasonally adjusted basis.

Google Stock Split Cement Founders Control

Google announced that it would split its stock between voting and non-voting shares. The new shares, which will be listed on the NASDAQ exchange, will allow the search-engine company’s founders, Larry Page and Sergey Brin, along with the chairman, Eric Schmidt, to maintain a controlling stake. A bet on Google is now a bet that its bosses will stay sharp indefinitely.

Car crashes rise in tax week

Fatal car crashes rise an average of 6 percent during the week that taxes are due, according to 30 years of statistics analyzed in a Journal of Medical Association study. The increase in risk is similar to that found on Super Bowl Sunday, a day notorious for drinking and driving.

The findings suggest a variety of feelings associated with preparing and paying one’s taxes (including stress, irritability, impatience and distraction) result in unsafe and aggressive driving. It makes sense that late nights preparing tax forms, fretting about getting them right and, of course, making timely payment could affect people’s judgment.

This year Tax Day falls on Tuesday, April 17th. You should be particularly cautious driving this whole week.

Inflation surpassed earnings

Consumer prices increased 0.3 percent last month, the department said on Friday. Gasoline prices rose 1.7 percent, a slowing from February when costs at the pump rose more than three times as quickly.

The inflation outstripped wage gains remains. Workers’ earnings fell 0.4 percent in March after adjusting for the increase in prices.

Core inflation, which strips out food and energy prices, climbed 0.2 percent, pushed higher by rising rents, medical care costs and used car prices.

In the 12 months to March, core consumer prices increased 2.3 percent after rising 2.2 percent in February. The persistence of core inflation could affect the Federal Reserve’s maneuvering room for stimulus.

Overall consumer prices rose 2.7 percent compared with a year ago, down from a reading of 2.9 percent in February.

U.S. Unemployment Fell to 8.2% in March

The U.S. unemployment rate in March fell to 8.2% from 8.3%, mainly because more people dropped out of the labor force.

The economy , meanwhile, added 120,000 jobs in March, marking the smallest increase in five months, the government reported Friday. The number of jobs created last month fell well below expectations and failed to break the 200,000 level for the first time since December. Employment in March was hurt in part by a 34,000 decline in retail jobs.

The average workweek fell 0.1 hour to 34.5, while average hourly earnings rose 0.2% to $23.39.

Employment gains for January and February were little changed under Labor Department revisions.