US stocks climbed along prices of oil as upbeat earnings assisted to spur the consumer stocks higher.
According to The Wall Street Journal, the Dow Jones Industrial Average rose 1.3% or 225.48 points to 17,416.85. Around 81 points of this climb came from Boeing and McDonald’s.
McDonald’s rose 5.1% or $4.49 to $93.27 as investors cheered the executive change. Boeing climbed 5.8% or 8.14 to 147.78, extending its gains from Wednesday when it climbed 5.4% after posting quarterly results.
The S&P 500 added 1% or 19.09 points to 2,021.25 while the Nasdaq Composite Index climbed 1% or 45.41 points to 4,683.41.
Stocks rose in the late afternoon trading with crude oil pricing rising. Energy shares in the S&P 500 rise 0.2% after losing around 2% earlier today.
Brian Jacobsen, chief portfolio strategist at Wells Fargo Funds Management said, “Oil moving higher shows the global growth picture isn’t as ugly as some are expecting.”
Stock futures had retained stiff losses after a report by the Commerce Department that the gross domestic product had expanded at an annual rate of 2.6% after the 5% pace of Q3. Analysts had estimated that the economy would grow at a rate of 3% in Q4.
Senior vice president and portfolio manager at Kingsview Asset Management, Paul Nolte was quoted by CNBC as having said, “We got a bit of a disappointment with the GDP numbers. Outside of that it’s still SOS. We’re still in that awkward spot between monetary tightening that the Fed has said they will do, and the economic data coming out that’s not that great.”
He added, “We’ve got quantitative easing around the world and deflation around much of the world. A lot of people are questioning the wisdom of raising interest rates at this point.”
To contact the reporter of the story: Jonathan Millet at firstname.lastname@example.org