Investors reacted to two different reports on the state of the consumer. The Commerce Department said consumer spending rose 0.3% in February. Personal income also rose 0.3%. Separately, the University of Michigan Consumer Sentiment Index declined in March, indicating consumers are slightly less optimistic about the prospects for the economy.
In corporate news, U.S. safety regulators closed an investigation into fires in Tesla’s Model S sedan after determining there is no “defect trend.” The National Highway Traffic Safety Administration said the finding that there was no defect trend does not constitute a finding that there is no safety issue. Tesla said it will install increased under-body shielding to limit the risk of damage to the battery, which could cause a fire. The NHTSA investigation stemmed from three car fires in the Model S sedan. Two of the fires started when the drivers ran over debris in the road, causing damage to the battery pack. Shares of Tesla (TSLA) still ended the day up 2.44% after the findings were released.
And CBS Outdoor (CBSO) gained in its first day of trading on the New York Stock Exchange, closing at $29.51 after pricing at $28 a share in its initial public offering. The billboard company stock was split off from CBS (CBS).