Wall St rises after Q3 GDP stronger than expected
U.S. stocks jumped on Thursday after data showed the U.S. economy grew faster than expected in the last quarter, soothing recent jitters that the recovery would be anemic.
Corporate earnings that topped expectations also buoyed the market, including Motorola Inc , up 3 percent at $58.95.
The first estimate of third-quarter gross domestic product showed the U.S. economy grew for the first time in a year, unofficially ending the worst recession in 70 years.
Other data showed the number of people still on jobless aid after an initial week of benefits slid in the week ended October 17, the lowest reading since March, hinting at some stability in the downtrodden job market.
The figures provided fuel for the S&P 500 index to resume its seven-month run-up after the broad stock gauge had sagged for four straight days. Investors looking for confirmation the economy is stabilizing had pegged their hopes on the GDP report.
In the near term we have the potential that GDP will exceed expectations, said David Sowerby, portfolio manager at Loomis Sayles in Detroit.
Longer term, I believe our speed limit has been reduced because of the additional debt we're placing on all the players of the economy.
Exxon Mobil Corp
The Dow Jones industrial average <.DJI> added 70.58 points, or 0.72 percent, to 9,833.27. The Standard & Poor's 500 Index <.SPX> rose 10.91 points, or 1.05 percent, to 1,053.54. The Nasdaq Composite Index <.IXIC> was up 23.44 points, or 1.14 percent, at 2,083.05.
(Editing by Padraic Cassidy)
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