The Dow and S&P 500 closed at record highs once again on
Friday, propelled by encouraging GDP numbers. The unexpected jump
in the U.S.'s economic growth helped benchmarks notch up their
best week in three months. The industrials and technology sectors
were the largest gainers among the S&P 500 industry groups,
while materials incurred most of the losses.
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to read today's
Ahead of Wall Street
The Dow Jones Industrial Average (DJI) gained 0.3% to close the
day at 16,221.14. The S&P 500 rose 0.5% to finish Friday's
trading session at 1,818.32. The tech-laden Nasdaq Composite
Index climbed 1.2% to end at 4,104.74. The fear-gauge CBOE
Volatility Index (VIX) decreased 2.54% to settle at 13.79.
Consolidated volumes on the New York Stock Exchange, American
Stock Exchange and Nasdaq were roughly 4.5 billion shares.
Advancing stocks outnumbered the decliners. For 73% shares that
advanced, only 24% declined.
According to the "third" estimate from the Bureau of Economic
Analysis, the output of goods and services
produced by labor and property in the United States increased at an
annual rate of 4.1% in the third
quarter of 2013. This was wider than the consensus estimate of
3.6%, and also above the 2.5% increase
in real GDP in the second quarter. The second estimate for the
increase in real GDP was 3.6%. The GDP
report published on Friday showed an unanticipated increase in
economic strength, most of which came
from consumer spending.
The price index for gross domestic purchases, which measures prices
paid by U.S. residents, rose 1.8%
in the third quarter. Real personal consumption expenditures
increased 2.0% in the third quarter, compared
with an increase of 1.8% in the second. Durable goods increased
7.9%, and nondurable goods increased
Last week, the central bank announced that it will reduce bond
repurchases by $10 billion, bringing its
monetary stimulus to $75 billion a month from Jan 2014. At the same
time, the Fed also indicated that
the key interest rate would continue to remain at a record low for
a longer period than what was promised
Federal Reserve Chairman Ben Bernanke said the central
bank would introduce similar steps in its upcoming Federal Open
Market Committee meetings. Bernanke said such reductions would
continue if economic data continued to remain positive. He said
the Fed would continue to maintain low borrowing rates in order
to increase spending and propel growth. At the same time, such
moves were aimed at pushing up the low level of inflation, he
Shares of Red Hat Inc. (NYSE:
) surged more than 14%, touching a 52-week high after the company
posted robust fiscal third quarter results. The company's
earnings and revenues came in above the Street's estimates.
Earnings jumped 44.8% whereas revenues soared 15.4% from the
The industrials sector was one of the biggest gainers among the
S&P 500 industry groups on Friday. The Industrials SPDR (XLI)
gained 0.3%. Stocks such as General Electric Company (NYSE:
), The Boeing Company (NYSE:
), United Technologies Corporation (NYSE:
), 3M Co (NYSE:
), and United Parcel Service, Inc. (NYSE:
) increased 0.2%, 1.1%, 1.1%, 0.2%, and 0.2%, respectively.
Also, the technology sector joined industrials on the list of
biggest gainers among the S&P 500 industry groups on Friday.
The Technology SPDR (XLK) gained 0.3% as well. Stocks such as
Apple Inc. (NASDAQ:
), Google Inc. (NASDAQ:
), Microsoft Corporation (NASDAQ:
), QUALCOMM, Inc. (NASDAQ:
), and Cisco Systems, Inc. (NASDAQ:
) increased 0.8%, 1.3%, 1.5%, 0.7%, and 0.3%, respectively.
The materials sector incurred maximum losses. The Materials SPDR
(XLB) lost 0.3%. Stocks such as Monsanto Company (NYSE:
), E I Du Pont De Nemours And Co (NYSE:
), The Dow Chemical Company (NYSE:
), International Paper Company (NYSE:
), and Nucor Corporation (NYSE:
) decreased 0.1%, 0.3%, 0.3%, 1.0%, and 0.8%, respectively.
APPLE INC (AAPL): Free Stock Analysis Report
BOEING CO (BA): Free Stock Analysis Report
CISCO SYSTEMS (CSCO): Free Stock Analysis
DOMINION RES VA (D): Free Stock Analysis
GENL ELECTRIC (GE): Free Stock Analysis
GOOGLE INC-CL A (GOOG): Free Stock Analysis
3M CO (MMM): Free Stock Analysis Report
MONSANTO CO-NEW (MON): Free Stock Analysis
MICROSOFT CORP (MSFT): Free Stock Analysis
QUALCOMM INC (QCOM): Free Stock Analysis
RED HAT INC (RHT): Free Stock Analysis Report
UTD PARCEL SRVC (UPS): Free Stock Analysis
UTD TECHS CORP (UTX): Free Stock Analysis
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