U.S. stocks gain on strong U.S. growth data; Dow rises 0.26%


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Investing.com - A surprisingly strong U.S. economic growth report sent stocks rising on Friday by fanning expectations for U.S. recovery to gain steam and allow for more solid corporate fundamentals in the future.

At the close of U.S. trading, the Dow Jones Industrial Average rose 0.26%, the S&P 500 index rose 0.48%, while the Nasdaq Composite index rose 1.15%.

The Commerce Department reported earlier that the U.S. gross domestic product expanded by 4.1% in the third quarter, well above consensus forecasts for 3.6% growth.

The report sent stocks rising by fanning hopes that corporate fundamentals will improve with the economy and grow without the support of the Federal Reserve's monthly USD85 billion bond-buying program.

On Wednesday, the Fed said it would trim its monthly asset purchases by USD10 billion in January, which markets applauded.

Trading volume was heavy, as stock index futures, stock index options, stock options and single stock futures expired, which happens on the third Friday of March, June, September and December.

Leading Dow Jones Industrial Average performers included Caterpillar, up 1.59%, Microsoft, up 1.50%, and UnitedHealth, up 1.46%.

The Dow Jones Industrial Average's worst performers included Nike, down 1.27%, Pfizer, down 1.24%, and Walt Disney, down 0.64%.

European indices, meanwhile, finished higher.

After the close of European trade, the EURO STOXX 50 rose 0.56%, France's CAC 40 rose 0.40%, while Germany's DAX 30 rose 0.69%. Meanwhile, in the U.K. the FTSE 100 finished up 0.33%.

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This article appears in: Investing , Forex and Currencies

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