NEW YORK, May 1 (UPI) -- U.S. investors weighed mixed reports on consumers Thursday, with spending up marginally but jobless claims up sharply on the month.

The U.S. Commerce Department said spending increased 0.4 percent in March, while initial unemployment claims jumped by 35,000.

The Dow Jones industrial average gained 52.52 or 0.41 percent to 12,872.65 in late-morning trading. The Standard and Poor's 500 gained 7.94 or 0.57 percent to 1,393.53. The Nasdaq composite index rose 38.89 or 1.61 percent percent to 2,451.69.

The 10-year U.S. Treasury note rose 11/32 to yield 3.71 percent.

The dollar was higher. The euro traded at $1.544 from Wednesday's $1.5615, while the dollar traded at 104.079 yen from Wednesday's 104 yen.

In Tokyo, the Nikkei index lost 83.13 points to 13,766.86, down 0.6 percent.

Canadian banker frets over long mortgages

OTTAWA, May 1 (UPI) -- The Bank of Canada's governor told Parliament he's concerned about the long-term economic effect of newly popular 40-year mortgages.

Mark Carney told the House Finance Committee Wednesday he had concerns about "very high loan to value mortgage products," the Toronto Star's Ottawa bureau reported.

"They add to momentum in the housing market and, if everyone has a 40-year amortization mortgage, then you just have higher housing prices," Carney said.

Statistics indicate more than half of first-time Canadian house-buyers are opting for 30-40 year mortgages in an economy based on 25-year plans, as housing prices are rising, the report said.

However, Carney said there was little chance of Canada having a similar problem to the U.S. sub-prime mortgage default blow-up.

"The structure of our housing finance is entirely different than that of the United States," he said.

Carney also said Canada is tied with Austria for having the lowest housing affordability among 20 industrialized nations monitored by the International Monetary Fund, the Star said.

Fuel costs change air travel's flight path

WASHINGTON, May 1 (UPI) -- Leisure travel and extra business trips on U.S. commercial flights could be substantially reduced in the next year, industry analysts report.

With surging jet fuel prices "some leisure travelers are going to be priced out," Tom Parsons, chief executive officer of BestFares.com told USA Today.

Ticket prices for popular destinations such as New York, Chicago and Los Angeles have risen 18 percent since last summer and airlines expect fuel costs to rise 44 percent this year, the report said.

Industry observers say there could be 20 percent fewer tickets available within the year, as carriers scale back on routes to keep planes as full as possible, USA Today said.

The changes to expect include higher prices, fewer non-stop flights, longer layover stops and few choices for scheduling.

A reduction of 20 percent is equal to 4,000 flights cancellations, USA Today reported.

Legislators considering ethanol rollback

WASHINGTON, May 1 (UPI) -- Washington legislators are reconsidering federal mandates on ethanol production that has been linked to rising food costs, various lawmakers said.

The Renewable Fuel Standard, passed four months ago, is under fire while food costs escalate, The Hill, a Washington newspaper, reported Thursday.

RFS calls for annual production of 36 billion gallons of ethanol -- 15 billion gallons coming from corn -- by 2022.

"We don't know how much of the food crisis was caused by it, but nobody expected it to cause much," U.S. Sen. Pete Domenici, R-N.M., said.

Senate Energy and Natural Resources Committee Chairman Jeff Bingaman, D-N.M., said "it's something we need to look at."

Grocers, oil companies and livestock producers have lobbied against the mandates.

Texas Gov. Rick Perry has asked for a waiver on the ethanol mandates, complaining that rising corn prices are costing the Texas livestock industry millions every year.

Now that food prices are rising "a lot of lawmakers are wondering who the hell they woke up with," Scott Faber, Grocery Manufacturers Association vice president for federal affairs told The Hill.