Consumer companies rose amid optimism about interest rates. Consumer Price index rose 0.4% in February from January levels, in line with economists' expectations, a development that kept the prospect of 2024 rate cuts on the table for the Federal Reserve.

One strategist said the gradual waning of inflation and the Fed's policy plans mean that the bull market in stocks could have legs.

"We need to see earnings hold up here in the first half of the year, and continue to see upside being driven by earnings improvement and less by multiple expansion," said Eric Marshall, president of Dallas mutual-fund firm Hodges Capital.

With mortgage rates stabilizing around 7%, the property market could continue to expand slowly. "The housing market to us looks stable," said Marshall. "Mortgage rates in the 7s, high 6s -- that's high enough to keep speculative building out of the market...it keeps a very healthy balance of supply and demand."

Airlines slipped amid mixed earnings for discount carriers.

Southwest Airlines tumbled after the discounter said it is re-evaluating its full-year financial guidance, citing uncertainty related to challenges at Boeing that are delaying aircraft deliveries.

JetBlue Airways raised its first-quarter revenue outlook and said non-fuel costs rose less than the budget airline initially expected.

Alaska Air said it has returned its fleet to service and now expects to top previous first-quarter performance targets despite having to ground its Boeing planes over an in-flight incident from January.


Write to Rob Curran at rob.curran@dowjones.com

(END) Dow Jones Newswires

03-12-24 1706ET