US STOCKS-Dow, S&P hit record after GDP data
23/12/2014 14:49
* Q3 GDP revised up to 5 percent annual pace
* Durable goods orders fall short of expectations
* UMich, new home sales on tap
(3Adds quote, data)
By Chuck Mikolajczak
NEW YORK, Dec 23 (Reuters) - U.S. stocks advanced on
Tuesday, with both the Dow and S&P 500 building on a four-day
rally to set new intraday records after an unexpectedly strong
report on economic growth.
The gains pushed the Dow over 18,000 for the first time in
its history, with the index reaching a high of 18,020.19.
The final estimate of the U.S. gross domestic product (GDP)
for the third quarter was revised up to a 5 percent annual pace,
its quickest in 11 years, from 3.9 percent reported last month,
on stronger consumer and business spending, the government said.
The report easily topped expectations calling for a 4.3
percent pace. ID:nLNNNNEA58
"That is a solid number, that is really what you want to
see, you want to see it in demand," said Jack Ablin, chief
investment officer at BMO Private Bank in Chicago.
"That is a huge plus, a five handle on GDP is astounding to
me, but I'm not going to turn it away - Merry Christmas."
However, durable goods orders unexpectedly fell 0.7 percent
in November, well short of expectations for an increase of 2.9
percent. Non-defense capital goods orders, excluding aircraft, a
closely watched proxy for business spending plans, was unchanged
after a downwardly revised 1.9 percent drop in October.
ID:nLNNNNEA59
Major Wall Street indexes have risen for four straight
sessions, pushing the benchmark S&P index .SPX to its 50th
record high of the year. The S&P has risen 5.4 percent over that
period, its best 4-day run since July 2010. The rally comes on
the heels of a selloff, sparked by a slump in oil prices that
saw the index drop nearly 5 percent from its prior record high
set on Dec. 5.
The Dow Jones industrial average .DJI rose 41.69 points,
or 0.23 percent, to 18,001.13, the S&P 500 .SPX gained 5.77
points, or 0.28 percent, to 2,084.31 and the Nasdaq Composite
.IXIC added 5.49 points, or 0.11 percent, to 4,786.92.
The Thomson Reuters/University of Michigan's final December
reading on consumer sentiment is scheduled for release at 9:55
a.m (1455 GMT). New home sales data for November as well as the
November reading for personal income and spending are expected
at 10 a.m. (1500 GMT).
Trading volume is expected to be light this week due to the
Christmas holiday, which could increase volatility. U.S. equity
markets will open for an abbreviated session Wednesday and be
closed on Thursday.
Walgreen Co WAG.N advanced 1.1 percent to $75.07 after the
drugstore chain operator reported a better-than-expected
quarterly profit. ID:nL3N0U7309
China Finance Online Co Ltd JRJC.O jumped 20.1 percent to
$6.39 after the web-based financial services company posted
quarterly results. ID:nL3N0U72PT
Advancing issues outnumbered decliners on the New York Stock
Exchange by 1,951 to 747, for a 2.61-to-1 ratio on the upside;
on the Nasdaq, 1,229 issues rose and 992 fell for a 1.24-to-1
ratio favoring advancers.
The benchmark S&P 500 index posted 79 new 52-week highs and
5 new lows; the Nasdaq Composite recorded 91 new highs and 10
new lows.
(Editing by Chizu Nomiyama, Jeffrey Benkoe and W Simon)
((charles.mikolajczak@thomsonreuters.com; @ChuckMik; +1 646 223
5234; Reuters Messaging:
charles.mikolajczak.thomsonreuters.com@reuters.net))