U.S. stocks open higher on GDP report; Dow Jones up 0.34%
Investing.com
Published Dec 20, 2013 09:40AM ET
U.S. stocks rise after GDP report
During early U.S. trade, the Dow Jones Industrial Average rose 0.34%, the S&P 500 index gained 0.31%, while the Nasdaq Composite index advanced 0.37%.
Official data showed that U.S. gross domestic product expanded by 4.1% in the third quarter, above initial estimates for 3.6% growth.
On Wednesday, the Fed announced that it would reduce its USD85 billion-a-month bond buying program by USD10 billion in January. In his last press conference as Fed Chairman Ben Bernanke said the economy was continuing to make progress.
The U.S. central bank reiterated that interest rates are likely to remain low even after the unemployment rate drops below 6.5%, the threshold at which the Fed has previously said it would start to consider rate increases.
Yahoo shares climbed 0.50% following reports the operator of the U.S. Web portal is restoring a multitasking tool for its online e-mail service after user complaints following a redesign two months ago.
Adding to gains, Microsoft added 0.17% after a former executive and his friend reportedly made insider trades before company announcements, using disposable “burner phones” and stacks of cash to secretly reap more than USD393,000.
Also in the tech sector, InterDigital dove 7.41% as the mobile-phone design company that said its executives were threatened for pursuing patent-infringement claims against one of China’s largest telecommunications companies, lost its case at a U.S. trade agency.
In earnings news, Nike said late Thursday that second-quarter profit topped analysts’ estimates, thanks to higher-priced shoes. Shares in the sporting-goods company tumbled 1.16% at the open of the U.S. trading session.
Other stocks likely to be in focus included BlackBerry, Carmax and Walgreen, all scheduled to release quarterly earnings later in the day.
Across the Atlantic, European stock markets were higher. The EURO STOXX 50 climbed 0.60%, France’s CAC 40 added 0.20%, Germany's DAX gained 0.66%, while Britain's FTSE 100 rose 0.35%.
During the Asian trading session, Hong Kong's Hang Seng Index slid 0.33%, while Japan’s Nikkei 225 Index edged up 0.07%.
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