After an announcement by the Commerce Department that the U.S. economy grew at a 5.0% annual rate in the 3rd quarter, Dow and S&P 500 respond by trading up. The Dow Jones Industrial Average rose 76 points, or 0.4%, to record-breaking 18,036 points. The S&P 500 index rose 5 points, or 0.2%. Health-care stocks were among the very few to post losses, down 2.1%. News of the strong economic growth causes a ripple effect throughout the market also resulting in higher oil gains and better US dollar performance.
Word on the Street
- The Dow closes above 18,000 points.
- US benchmark West Texas Intermediate rose to $57.12 a barrel.
- Dollar is up against most major currencies.
- Stock markets will close early on Wednesday and will be closed Thursday for Christmas.
- Coca-Cola (KO) rumoured to cut 2,000 jobs by January 15.
- FTC: public submitted nearly 4M comments on net neutrality.
- Vanda Pharmaceuticals (VNDA) reaches settlement with Novartis AG (NVS).