(By Salman - iStockAnalyst Writer)US stocks finished solid gains as stronger-than expected GDP data and upbeat corporate earnings boosted investor optimism over an economic recovery.
The Dow Jones Industrial Average rallied 199.89 points or 2.05% to finish at 9,962.58. The S&P 500 jumped 23.48 points or 2.25% to end at 1,066.11. The Nasdaq Composite surged 37.94 points or 1.84% to 2,097.55.
The Commerce Department reported Thursday that U.S. GDP expanded at a 3.5% annual pace in the third quarter, matching consensus estimates. It was the first increase in real gross domestic product in a year and it was the strongest growth in two years, the report said.
A release by Department of Labor on Thursday showed number of Americans filing first- time claims for unemployment benefits fell 1,000 to 530,000 in the week ending October 24. Economists expected jobless claims to drop to 524,000. The four-week average of seasonally adjusted initial jobless claims, a less volatile gauge, decreased 6,000 to 526,250. Continuing claims for the week ending October 17 dropped 148,000 to 5.8 million.
Shares of Alcoa Inc. (NYSE:
AA), the largest US aluminum maker, soared $1.07 or 8.97% to $13.
Equipment maker Caterpillar Inc. (NYSE:
CAT) surged $2.82 or 5.18% to $57.25.
Shares of financials finished up. Bank of America (NYSE:
BAC) jumped 72 cents or 4.80% to $15.73. American Express Co. (NYSE: AXP) surged $1.77 or 5.11% to $36.44. JP Morgan & Chase & Co. (NYSE: JPM) rallied $1.67 or 3.91% to close at $44.35.
Shares of diversified US firm General Electric Co. (NYSE:
GE) advanced 45 cents or 3.12% to $14.87.
Walt Disney (NYSE:
DIS), the largest US theme park operator, climbed 90 cents or 3.30% to $28.14.
Among energy stocks, Chevron Corp. (NYSE:
CVX) climbed $2.06 or 2.71% to $77.95.
Early on Thursday, Procter & Gamble Co. (NYSE:
PG) announced that third-quarter net income dropped 1 percent to $3.35 billion, or 1.06 per share, compared to $3.31 billion, or $1.03 per share, in the comparable quarter last year. Revenue dropped 6 percent to 19.8 billion.
