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 The final estimate of the U.S. gross domestic product for the third
quarter was revised up to a 5 percent annual pace, its quickest in
11 years, from the 3.9 percent reported last month on a stronger
consumer and business spending, the government said.
The report easily topped expectations calling for a 4.3 percent
pace. [ID:nLNNNNEA58]
"That is a solid number, that is really what you want to see, you
want to see it in demand," said Jack Ablin, chief investment officer
at BMO Private Bank in Chicago.
"That is a huge plus, a five handle on GDP is astounding to me, but
I’m not going to turn it away - Merry Christmas."
However, durable goods orders unexpectedly fell 0.7 percent in
November, well short of expectations calling for an increase of 2.9
percent. Non-defense capital goods orders excluding aircraft, a
closely watched proxy for business spending plans, was unchanged
after a downwardly revised 1.9 percent drop in October.
Major Wall Street indexes have risen for four straight sessions,
pushing the benchmark S&P index <.SPX> to its 50th record high of
the year. The S&P has risen 5.4 percent over that period, its best
4-day run since July 2010. The rally comes on the heels of a
selloff, sparked by a slump in oil prices that saw the index drop
nearly 5 percent from its prior record high set on Dec. 5.
S&P 500 e-mini futures <ESc1> were up 9.25 points and fair value, a
formula that evaluates pricing by taking into account interest
rates, dividends and time to expiration on the contract, indicated a
higher open. Dow Jones industrial average e-mini futures <1YMc1>
rose 75 points and Nasdaq 100 e-mini futures <NQc1> added 14.5
points.
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The Thomson Reuters/University of Michigan's final December reading
on consumer sentiment is scheduled for release at 9:55 a.m. New home
sales data for November as well as the November reading for personal
income and spending are expected at 10 a.m..
Trading volume is expected to be light this week due to the
Christmas holiday, which could increase volatility. U.S. equity
markets will open for an abbreviated session Wednesday and be closed
on Thursday.
Walgreen Co <WAG.N> advanced 2.3 percent to $76 in premarket after
the drugstore chain operator reported a better-than-expected
quarterly profit.
China Finance Online Co Ltd <JRJC.O> jumped 21.2 percent to $6.45
before the opening bell after the web-based financial services
company posted quarterly results.
(Editing by Chizu Nomiyama, Jeffrey Benkoe and W Simon)
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