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U.S. stocks edge higher after GDP report; Dow Jones up 0.06%

Published 08/29/2012, 09:51 AM
Updated 08/29/2012, 09:51 AM
Investing.com - U.S. stocks opened slightly higher on Wednesday, after data showed that the U.S. economy grew slightly faster than initially estimated in the second quarter, while investors awaited a speech by Federal Reserve Chairman Ben Bernanke on Friday.

During early U.S. trade, the Dow Jones Industrial Average eased up 0.06%, the S&P 500 index added 0.12%, while the Nasdaq Composite index rose 0.17%.

The U.S. Commerce Department said gross domestic product increased at a seasonally adjusted annual rate of 1.7% in the three months to June, in line with expectations and up from a preliminary estimate of 1.5%.

Investors remained cautious ahead of a speech by the Federal Reserve chairman at the central bank’s annual symposium in Jackson Hole, Wyoming on Friday, amid ongoing speculation over how close the Fed is to implementing more stimulus measures.

Sentiment also found some support amid expectations that the European Central Bank is working on measures to help stabilize the euro zone's sovereign debt markets, ahead of its next policy meeting on September 6.

Financial stocks were broadly higher, led by Citigroup, up 0.99%, and closely followed by Goldman Sachs, with shares climbing 0.93%, while Bank of America and JP Morgan advanced 0.88% and 0.97% respectively.

Morgan Stanley also saw shares jump 1.37% after Reuters reported earlier that it and Citigroup agreed to give an arbitrator additional time to evaluate the price tag for their Morgan Stanley Smith Barney brokerage joint venture.

Apple added to gains, with shares rising 0.31% a day after a U.S. judge set a December 6 court date to hear the iPhone maker’s request for a permanent injunction against Samsung Electronics' smartphones.

Elsewhere, General Motors saw shares surge 1.77% amid reports it is planning to invest USD1 billion over the next five years to expand car and component production in Russia, one of the fastest-growing auto markets in the world.

On the downside, Chevron declined 0.43% as an injunction banning the number 2 U.S. oil company and its drilling contractor Transocean from operating in Brazil was upheld by a panel of three Brazilian federal judges on Tuesday. Rival Exxon Mobil also moved lower, falling 0.19%.

Among earnings, H.J. Heinz dropped 0.80% even as it posted better-than-expected earnings, a day after the ketchup producer said profit would top estimates.

Other stocks in focus included Pandora and TiVo, slated to post earnings after the closing bell.

Across the Atlantic, European stock markets were mixed. The EURO STOXX 50 fell 0.11%, France’s CAC 40 dropped 0.37%, Germany's DAX added 0.23%, while Britain's FTSE 100 slipped 0.25%.

During the Asian trading session, Hong Kong's Hang Seng Index fell 0.12%, while Japan’s Nikkei 225 Index rose 0.4%.

Later in the day, the U.S. was to release an industry report on pending home sales.


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