Wall Street Gains On Better Than Expected GDP Data

New York, NY (AHN) - U.S. markets traded positive on Thursday after the government reported third quarter gross domestic product (GDP) fell by 0.3 percent, less than the 0.5 percent economists had estimated.

The report is an advanced reading of third quarter GDP where certain items are estimated. Net exports in September were strong and were one of the estimated items. It is believed the data could come in stronger than expected, thus giving a boost to GDP when it is revised.

The news sent the Dow Jones Industrial average up 189 points or 2.1 percent. 28 of 30 Dow components finished Thursday with a gain. Intel was the largest Dow gainer, up 8.2 percent after the Semiconductor Industry Association said semiconductor sales in September rose 1.1 percent from last month.

The S&P 500 added 24 points or 2.5 percent. All ten major economic sectors finished the session higher, but many were only slightly positive. The financial sector finished with a 1.3 percent gain.

Tech moved higher with the Nasdaq Composite adding 41 points or 2.5 percent. Big-cap tech kept pace as the Nasdaq 100 rose 2.4 percent. However, the semiconductor sector provided the most strength, up 4 percent on the SIA sales data.

On the corporate front, Colgate-Palmolive reported better than expected earnings as sales surged in foreign markets. The consumer products company also offered an upbeat outlook for 2009.

Exxon Mobil announced strong quarterly earnings that topped the record set last quarter. The oil giant did offer a tepid outlook for the coming year since oil prices have dropped so drastically.

As for economic news, unemployment claims for the week ending Oct. 25 were unchanged at 479,000. However, economists were looking for a drop in claims to 475,000.

Friday's session will see the release of September personal income data.