Stocks are accelerating higher after second-quarter economic
growth beat expectations.
S&P 500 futures were up about up 0.2 percent before the
report but are now higher by more than 0.4 percent. The Nasdaq
rose more than 0.6 percent. Europe was fractionally lower and
Asia was little-changed overnight.
The Commerce Department's preliminary estimate of gross domestic
product between April and June showed an increase of 4 percent,
better than the 3.2 percent gain forecast by economists. That
marks a major change in tone from the first quarter, when the
figure lagged estimates by a wide margin.
ADP also announced that private-sector employers added 218,000
jobs this month, slightly better than the 215,000 consensus
number. Today's third major event comes at 2 p.m. ET, when the
Federal Reserve announces monetary policy.
The S&P 500 has been consolidating for most of the month
after breaking out to new all-time highs in late-May and June.
Transportation stocks and the Nasdaq have been the stronger
segments in the market, while domestic-focused small caps have
lagged. Emerging markets, basic metals and European banks have
also returned to favor as investors embrace a global-growth
theme. (See our
market scanner for a more complete market analysis.)
In company-specific news, social-media stock Twitter is exploding
higher after earnings and revenue beat expectations. Guidance was
also strong and shares are indicated up 27 percent in early
trading. Amgen rose 4 percent and medical-device company Zeltiq
popped 25 percent, both on strong results. U.S. Steel rose 10
percent after reporting an unexpected profit and a
smaller-than-forecast revenue drop. Hess gained 4 percent after
surpassing consensus and announcing it would spin off its
More earnings scheduled this afternoon include Akamai
Technologies, Lam Research, Kraft Foods, and Western Digital. The
agenda includes two major economic events again on Friday:
non-farm payrolls and the Institute for Supply Management's
There are no big movers in commodity or currency markets, but
that could change with today's big economic events. The Japanese
yen is down slightly, a potential reflection of risk