US economy up 3.5%, Done Jones rising 200 points
US economy up 3.5%, Done Jones rising 200 points
08:09, October 30, 2009 
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U.S. stocks rallied and lodged their best day in 3 months as investors rushed into the market on word the American economy grew faster than expected in summer.
The Dow Jones industrial average jumped 200 points Thursday to recoup most of its losses for the week.
The Commerce Department's report that gross domestic product rose at an annual rate of 3.5 percent in the third quarter reinvigorated investors who had dumped stocks for much of the week on signs of a slowing housing market.
The U.S. economic growth came in ahead of the 3.3 percent rise forecast by most economists polled by Thomson Reuters. It was the strongest growth in two years and broke four straight quarters of declines. Coming on the 80th anniversary of the stock market crash that triggered the Great Depression, it was the best indication yet that the longest recession since then has ended.
Government stimulus programs including the popular Cash for Clunkers auto rebates and tax credits for first-time home buyers bolstered the U.S. economy. Once the government's stimulus measures run their course, the economy could run afoul of lingering problems such as high unemployment and weak consumer spending.
"I don't think that at this point in the rebound that the economy would be self-sustainable," said Jason D. Pride, director of research at Haverford Investments in Philadelphia. "The only way to have effective sustained economic growth is to have job growth, but it tends to come later."
Analysts say the recovery is likely to be bumpy as consumers try to pay down debt and credit for small businesses remains tight.
But such concerns were pushed aside Thursday.
The Dow Jones industrial average rose 199.89, or 2.1 percent, to 9,962.58. It was the best day for the Dow since July 15.
The broader Standard & Poor's 500 index rose 23.48, or 2.3 percent, to 1,066.11, while the Nasdaq composite index rose 37.94, or 1.8 percent, to 2,097.55.
The ICE Futures US dollar index, which measures the dollar against other major currencies, fell after five straight days of gains. The weaker dollar made commodities more attractive for foreign buyers. Gold rose $16.60 to $1,047.10 an ounce on the New York Mercantile Exchange, while crude oil soared $2.41 to settle at $79.87 a barrel.
Other economic news was mixed. The number of people claiming jobless benefits for the first time dropped less than expected last week. The Labor Department said workers filing first-time claims for unemployment dipped 1,000 to a seasonally adjusted 530,000 last week. Economists expected a larger decline to 521,000.
Britain's FTSE 100 rose 1.1 percent, Germany's DAX index rose 1.7 percent and France's CAC-40 gained 1.4 percent.
People's Daily Online – Agencies
The Dow Jones industrial average jumped 200 points Thursday to recoup most of its losses for the week.
The Commerce Department's report that gross domestic product rose at an annual rate of 3.5 percent in the third quarter reinvigorated investors who had dumped stocks for much of the week on signs of a slowing housing market.
The U.S. economic growth came in ahead of the 3.3 percent rise forecast by most economists polled by Thomson Reuters. It was the strongest growth in two years and broke four straight quarters of declines. Coming on the 80th anniversary of the stock market crash that triggered the Great Depression, it was the best indication yet that the longest recession since then has ended.
Government stimulus programs including the popular Cash for Clunkers auto rebates and tax credits for first-time home buyers bolstered the U.S. economy. Once the government's stimulus measures run their course, the economy could run afoul of lingering problems such as high unemployment and weak consumer spending.
"I don't think that at this point in the rebound that the economy would be self-sustainable," said Jason D. Pride, director of research at Haverford Investments in Philadelphia. "The only way to have effective sustained economic growth is to have job growth, but it tends to come later."
Analysts say the recovery is likely to be bumpy as consumers try to pay down debt and credit for small businesses remains tight.
But such concerns were pushed aside Thursday.
The Dow Jones industrial average rose 199.89, or 2.1 percent, to 9,962.58. It was the best day for the Dow since July 15.
The broader Standard & Poor's 500 index rose 23.48, or 2.3 percent, to 1,066.11, while the Nasdaq composite index rose 37.94, or 1.8 percent, to 2,097.55.
The ICE Futures US dollar index, which measures the dollar against other major currencies, fell after five straight days of gains. The weaker dollar made commodities more attractive for foreign buyers. Gold rose $16.60 to $1,047.10 an ounce on the New York Mercantile Exchange, while crude oil soared $2.41 to settle at $79.87 a barrel.
Other economic news was mixed. The number of people claiming jobless benefits for the first time dropped less than expected last week. The Labor Department said workers filing first-time claims for unemployment dipped 1,000 to a seasonally adjusted 530,000 last week. Economists expected a larger decline to 521,000.
Britain's FTSE 100 rose 1.1 percent, Germany's DAX index rose 1.7 percent and France's CAC-40 gained 1.4 percent.
People's Daily Online – Agencies
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