Rosier GDP outlook boosts stocks
NEW YORK — U.S. stocks climbed Wednesday as investors cheered a report of stronger economic growth. Technology companies, retailers and travel providers all made solid gains.
The Standard & Poor’s 500 index climbed 11.29 points, or 0.5 percent, to 2,457.59. The Dow Jones industrial average picked up 27.06 points, or 0.1 percent, to 21,892.43. The Nasdaq composite gained 66.42 points, or 1.1 percent, to 6,368.31 as technology companies rose for the third day in a row. The Russell 2000 index of smaller-company stocks added 7.64 points, or 0.6 percent, to 1,391.32.
The Commerce Department raised its estimate for economic growth and said the U.S. gross domestic product grew at its fastest pace in two years between April and June. Stocks were wobbly at the outset, but investors’ concerns about tensions between the U.S. and North Korea appeared to ease and stocks moved higher as the day wore on. Along with technology companies and consumerfocused firms, health care companies and banks finished higher. Big names like Microsoft, Amazon and Facebook made some of the biggest gains.
“For all the tough times we’ve had the last couple of weeks, the thing that’s kept the market afloat is the strong economic data,” said Brent Schutte, chief investment strategist at Northwestern Mutual Wealth Management. With more economic reports coming over the next few days, Schutte said, investors will be looking for evidence of higher pay and greater inflation, and stocks should keep rising as long as the economy
remains in good shape and inflation doesn’t pick up.
The government raised its GDP projection from last month, and the secondquarter estimate is much better than the first quarter, when growth was 1.2 percent. Meanwhile, private businesses added 237,000 jobs in August, with broad gains across several industries including construction, manufacturing and leisure and hospitality, according to a survey by payroll processor ADP.
Shares of Analog Devices advanced after the semiconductor company announced strong results in its third quarter along with a better-thanexpected revenue forecast for the current period. Its stock jumped $4.17, or 5.2 percent, to $83.72. Microsoft gained 96 cents, or 1.3 percent, to $74.01, and Facebook picked up $1.87, or 1.1 percent, to $169.92. Amazon rose $13.53, or 1.4 percent,
Wyrzykowski said the loss of profits from the cream curtailed other charitable works and forced him to sell property that was going to be used for a spiritual center.
The Catholic Church withdrew recognition of the Teresian Carmelites in 2008, saying it no longer met the criteria to be a Catholic organization. But the group continued as a nondenominational nonprofit with about 15 current members, Wyrzykowski said.
“We’ve basically turned it into a foundation because we were no longer able to sustain what we were doing because of what L’Oreal did,” he said.
The lawsuit seeks unspecified damages. to $967.59.
Bank of America climbed 41 cents, or 1.7 percent, to $23.87.
President Donald Trump stumped for tax cuts in an afternoon speech in Springfield, Mo., and while investors want to see tax rates lowered, Wall Street’s reaction was muted.
“Right now expectations are low enough that if anything gets done, Wall Street will cheer it,” Schutte said.
Bond prices inched lower after a big jump the day before. The yield on the 10-year Treasury note rose to 2.14 percent from 2.13 percent.
In other energy trading, heating oil added 1 cent to $1.67 a gallon. Natural gas lost 4 cents to $2.94 per 1,000 cubic feet.
Gold fell $4.80 to $1,314.10 an ounce. Silver dipped 2 cents to $17.40 an ounce. Copper lost 2 cents to $3.06 a pound.