US stocks rallied overnight as fresh data showed the American economy returned to growth in the third quarter, lifting hopes of a sustained rebound in corporate profits.
The Dow Jones industrial average rose 200 points to 9,963. The S&P500 Index rose 23 points to 1,066 and the NASDAQ closed 38 points higher to 2,098.
In economic news, the government reported that GDP grew at an annual rate of 3.5% in the third quarter, which was a better result than the 3.2% growth that many economists were expecting and much better than the fall of 0.7% in the second quarter.
The government also reported that new claims for unemployment fell to 530,000 last week from 531,000 the week before. While continuing claims fell to 5,797,000 from 5,945,000 the week before.
In company news: Shares in Procter & Gamble (NYSE:PG) gained 4.04% to $59.54. The consumer products maker reported weaker quarterly earnings and revenue that surpassed expectations and also boosted the low end of its fiscal 2010 earnings forecast.
Colgate-Palmolive (NYSE:CL) shares rose 1.62% to $78.94, after the maker of toothpaste and soap posted an 18% increase in third-quarter profit.
Exxon Mobil (NYSE: XOM) shares inched up 0.16% to $73.96. The top US oil company revealed its quarterly earnings plunged 68% due to lower oil and natural gas prices, while it also posted weaker quarterly revenue as well.
Motorola (NYSE:MOT) shares surged 9.8% to $8.74, after the US mobile-phone maker predicted fourth-quarter profit that may exceed analysts’ estimates and as job cuts helped it beat projections for the previous period.
Checking the NASDAQ Top 100: Akamai Technologies was the best performer and added 13.05% to $22.79. Followed by Symantec and O’Reilly Auto. First Solar was the biggest drag on the NASDAQ, falling 16.57% to $126.47. Dentsply International and Apollo Group also finished lower.
