U.S. Gross domestic product shrank slower than expected, bossting stocks while causing the dollar to slump.
From Lynn Thomasson, Bloomberg:
July 31 (Bloomberg) -- U.S. stocks rose, extending the Dow Jones Industrial Average’s best monthly gain since 2002, as better-than-estimated gross domestic product spurred speculation the economy is recovering from the recession.
General Electric Co., Bank of America Corp. and Alcoa Inc. helped lead gains in the Dow as the Commerce Department said the economy shrank at a 1 percent annual rate last quarter, better than the 1.5 percent slump forecast by economists. Ford Motor Co. jumped 6.6 percent on speculation the government’s “cash for clunkers” program is boosting demand for cars. The dollar declined to the lowest level this year against six major trading partners, while metals, oil and Treasuries advanced.
The S&P 500 increased 0.5 percent to 991.74 at 2:16 p.m. in New York. The index, up 7.9 percent in July, is headed for a fifth straight monthly advance, the longest streak since 2007. The Dow added 51.31 points, or 0.6 percent, to 9,205.77 and is up 9 percent in July.
