NEW YORK, Oct. 29 (Xinhua) -- Wall Street rallied on Thursday after the U.S. government posted a better-than-expected report on the economic growth.
The U.S. Commerce Department posted that the U.S. economy grew at an annual rate of 3.5 percent in the third quarter after four consecutive quarterly declines, showing a sign that the worst recession since the 1930's has ended.
Consumer spending on durable goods soared at an annualized rate of 22.3 percent in the July-September period, the biggest rise since the end of 2001. The jump largely reflected car purchases driven by the government's Cash for Clunkers program.
Federal government spending, which rose at a rate of 7.9 percent in the third quarter, also made a significant contribution to the economic turnaround.
However, some economist worried that the recovery was mainly driven by the government's stimulus package and might not be sustainable when the stimulus policies fell off.
On Thursday, the Labor Department said its tally of newly laid-off workers seeking unemployment insurance fell by 1,000 to a seasonally-adjusted 530,000 last week. Analysts expected a steeper drop to 521,000. The reading indicated that the labor market remains weak even as the economy is recovering.
Energy companies and raw-material producers rose as crude oil and metals posted gains.
Motorola Inc. and Procter & Gamble Co. climbed on better-than- estimated earnings.
The Dow Jones rose 199.81, or 2.05 percent, to 9,962.58. Broader indexes also went higher. The Standard & Poor's 500 index climbed 23.48, or 2.25 percent, to 1,066.11 and the Nasdaq rose 37.94, or 1.84 percent, to 2,089.42.
Strong U.S. GDP data drives dollar lower
NEW YORK, Oct. 29 (Xinhua) -- The dollar fell against most major currencies on Thursday as U.S. economic growth was stronger than expected in the third quarter.
Real gross domestic product (GDP) grew a 3.5 percent annual rate in the third quarter, stronger than most expectations, according to the U.S. Commerce Department. It was the first increase after four quarters of contraction. The report indicated that U.S. has emerged from its longest and deepest recession in the post-war period. Full story
Oil ends up 3% on strong U.S. economic growth
NEW YORK, Oct. 29 (Xinhua) -- Crude prices ended 3 percent higher on Thursday, rallying on news that U.S. economy grew faster than expected in the third quarter, raising hopes for a speedy recovery in energy demand.
Light, sweet crude for December delivery rose 2.41 U.S. dollars, or 3.0 percent, to settle at 79.87 dollars a barrel on the New York Mercantile Exchange.Full story
Gold bounces to 3-day high as dollar weakens on GDP report
CHICAGO, Oct. 29 (Xinhua) -- Gold futures on the COMEX Division of the New York Mercantile Exchange rallied to a 3-day high on Thursday as a dropping dollar refueled gold's demand of hedge. Silver and platinum both rose.
The most active gold contract for December delivery soared 16.60 U.S. dollars, or 1.6 percent, to finish at the highest level of 1,047.10 dollars an ounce in recent 3 sessions. After a 4 session rally, dollar saw its first drop in recent 5 sessions on Thursday, dragged by a higher-than-expected GDP report.Full story
