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Overnight Markets: Wall Street gains as US economy expands
by Himanshu Singh on Aug 30, 2013 at 04:00
Wall Street closed slightly higher on Thursday as data showed the US economy expanded at a faster pace in the second quarter, but uncertainty over possible military action against Syria continued.
The Dow Jones industrial average was up 16 points, or 0.11%, at 14,841. The Standard & Poor's 500 Index was up three points, or 0.20%, at 1,638. The Nasdaq Composite Index was up 27 points, or 0.75%, at 3,620.
Shares gained after the US government said in an upwardly revised estimate the economy expanded by a stronger-than-expected 2.5% in the second quarter.
Separately, weekly jobless claims declined more than anticipated last week, a possible sign that hiring improved in August.
Stocks pared gains in the last hour on concerns over Syria. Many in the market expect a strike by the US and its allies because of an alleged poison gas attack by government forces that killed Syrian civilians.
US crude futures have spiked 2.2% this week on tensions oil supply from the Middle East will be interrupted.
US-listed shares of Vodafone Group (VOD.O) jumped 8.1% as the biggest percentage gainer on the Nasdaq 100 index after the company said it was in talks with Verizon Communications (VZ.N) to sell its 45% stake in their US joint venture, Verizon Wireless. Verizon rose 2.7%.
Homebuilding stocks were among the strongest of the day. Lennar Corp (LEN.N) rose 3.2% while PulteGroup Inc (PHM.N) was up 3.1%.
Salesforce.com Inc (CRM.N) jumped 6.8% in after-hour trading after the software company raised its full-year revenue outlook.
Guess Inc (GES.N) jumped 13% in the wake of second-quarter results that beat Wall Street estimates, bucking a trend of falling sales for apparel retailers.
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