Midday Update: Q3 GDP Revision to 4.1% Sends Stocks To Record Levels

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Wall Street is again on pace for new all-time highs after robust consumer spending and inventory accumulation pushed Q3 GDP to a two-year high, renewing demand for U.S. equities as economic growth continues to improve. Gains are broad-based, although shares of consumer discretionary, healthcare and technology companies continue to outperform while Dow components Boeing ( BA ) and Caterpillar ( CAT ) are leading the industrial sector higher.

Q3 gross domestic production was revised upward again, with the Bureau of Economic Analysis reporting a 4.1% growth rate during the three months ended Sept. 30, up from an initial revision of 3.6% growth. Business investment and consumer spending led the quarterly gains although much of the increased consumer spending was attributed to fuel and healthcare costs. Also, the inventory stockpile could adversely impact GDP in Q1 of 2014 as businesses slow production to work through the buildup.

Other data this morning was not as bullish, with corporate profits slowing slightly to a 5.6% pace during Q3 compared to 5.8% in the previous quarter while the Kansas City Fed manufacturing index showed a contraction to a negative 3.0 reading this month from a positive 7.0 November reading.

European markets were also up despite an S&P downgrade to the EU-zone to AA+ from triple-AAA, as well as downbeat economic data from the UK and Italy. Despite these drags on sentiment, European equities enjoyed their best week in 8 months.

Crude oil was up $0.83 to $98.63 per barrel. Natural gas was unchanged at $4.47 per 1 million BTU. Gold was up $9.90 to $1,203.40 an ounce, while silver was up $0.24 to $19.43 an ounce. Copper was up $0.02 to $3.31 per pound.

Among energy ETFs, the United States Oil Fund was up 0.37% to $35.45 with the United States Natural Gas Fund was up 0.32% to $21.80. Amongst precious-metal funds, the Market Vectors Gold Miners ETF was up 0.69% while SPDR Gold Shares were up 1.04% to $116.02. The iShares Silver Trust was up 1.14% to $18.70.

Here's where the markets stand at mid-day:

NYSE Composite Index up 52.31 (+0.52%) to 10203.84

Dow Jones Industrial Average up 94.36 (+0.58%) to 16273.44

S&P 500 up 11.97 (+0.66%) to 1821.57

Nasdaq Composite Index up 43.58 (+1.07%) to 4101.72

GLOBAL SENTIMENT

Nikkei 225 Index up 0.07%

Hang Seng Index down 0.33%

Shanghai China Composite Index down 2.02%

FTSE 100 Index up 0.33%

CAC 40 up 0.40%

DAX up 0.69%

NYSE SECTOR INDICES

NYSE Energy Sector Index up 0.45%

NYSE Financial Sector Index up 0.50%

NYSE Healthcare Sector Index up 0.28%

UPSIDE MOVERS

(+) ARIA, U.S. Food and Drug Administration has approved revised prescribing information for Iclusig, allowing the company to immediately resume marketing and distribution of the drug.

(+) ORMP, Clinical trial testing oral insulin in type 1 diabetes patients was successful.

(+) MKTG, Responsys will be acquired by ( ORCL ) for $27 per share in cash or approximately $1.5 billion.

(+) RHT, Reported Q3 revenue of $397 mln, vs. the analyst consensus of $383 mln. EPS was $0.42, vs. expectations of $0.35 per share.

DOWNSIDE MOVERS

(-) NAVB, The European Medicines Agency has elected to continue the assessment of the Marketing Authorization Application for Lymphoseek injection.

(-) NKE, The company's guidance was seen as a sign of mounting margin pressures, prompting Canaccord Genuity to cut its price target on the stock by $1.

(-) TIBX, Fiscal Q4 profit slipped 8.7%.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

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This article appears in: Investing , Commodities

Referenced Stocks: BA , CAT , ORCL

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