GDP pushes U.S. markets higher

January 29, 2010 - 0 comments

New York -- The Commerce Department said the U.S. economy surged 5.7 percent in the fourth quarter in a preliminary estimate that soundly beat expectations.

Economists expected a rise between 4.5 percent and 4.8 percent. But the government said the GDP was helped with a 2 percent increase in consumer spending and increased exports.

In midmorning trading, the Dow Jones industrial average added 60.83 points, 0.6 percent, to 10,181.29. The Standard & Poor's 500 rose 0.58 percent, 6.24 points, to 1,090.77. The Nasdaq composite index rose 0.44 percent, 9.52 points, to 2,188.52.

The benchmark 10-year U.S. Treasury bill fell 7/32 to yield 3.67 percent.
The euro fell to $1.3903 from Thursday's $1.3972. Against the yen, the dollar rose to 90.79 yen from Thursday's 89.86 yen.

In Tokyo, the Nikkei 225 index lost 2.08 percent, 216.25, to 10,198.04.