This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

US growth upgrade gives stocks another lift

By SARAH DiLORENZO

PARIS (AP) a¿¿ News that the U.S. economy grew by more than previously thought in the third quarter shored up global markets Friday and sent the main U.S. indexes up to record highs.

Government figures showed that the world's largest economy grew by an annualized rate of 4.1 percent in the third quarter, up from the previous estimate of 3.6 percent. The pace of growth is further evidence that the U.S. economy is gaining traction and helps explain why the U.S. Federal Reserve decided to reduce its stimulus by $10 billion a month starting from January.

Mindful of the impact on markets, the Fed also emphasized Wednesday that its main interest rate would remain low until U.S. unemployment falls below 6.5 percent. It's now 7 percent. That commitment has helped support stock markets since despite concerns among investors about the potential impact of the stimulus reduction a¿¿ over the past few years, the stimulus has been a key reason behind the bounce back in stocks.

"These gains may continue in the coming weeks, although with the holiday season now upon us, trading volumes will be significantly reduced," said Craig Erlam, market analyst at Alpari. "The economic calendar will also provide less direction for the markets, making any significant moves unlikely."

In Europe, the FTSE 100 index of leading British shares closed up 0.3 percent at 6,606.58 while Germany's DAX rose 0.7 percent to 9,400.18. The CAC-40 in France ended 0.1 percent higher at 4,193.77.

In the U.S., the Dow Jones industrial average was up 0.5 percent at 16,265, while the broader S&P 500 index rose 0.6 percent to 1,821.

In Asia, in particular, investors are also monitoring developments in China, and specifically whether the country's monetary authorities will be able to prevent a new cash crunch at its banks. The People's Bank of China moved late Thursday to inject liquidity after the interbank market showed stress, but concerns over a repeat of the summer's credit crunch weighed on the market.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

Chart of I:DJI
DOW 16,654.77 +369.26 2.27%
S&P 500 1,987.66 +47.15 2.43%
NASDAQ 4,812.7080 +115.1720 2.45%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs