Dow Jumps to All-Time High as GDP Growth Hits 4.1%
Although we don't believe in timing the market or panicking over daily movements, we do like to keep an eye on market changes -- just in case they're material to our investing thesis.
The Dow Jones Industrial Average rose to an all-time high today after the government revised third-quarter DP growth upward to 4.1%. As of 1:30 p.m. EST the Dow was up 95 points to 16,273. The S&P 500 had risen 13 points to 1,822.
There was one U.S. economic release today.
GDP (3rd Estimate)
The government's final third-quarter GDP growth estimate was far better than the 3.7% analysts had expected. Leading the shift upward was a revision in consumer spending from 1.4% to 2% growth.
Inventory growth was still the largest contributor to the rise in GDP growth, accounting for 1.7 percentage points or nearly 40% of that jump. Economists are debating whether demand will materialize with the rise in inventories or if GDP growth will fall off as inventories drop to a more normal level. Early signs have pointed to a weak holiday shopping season, fueling their concerns. We will have to wait until Jan. 30 for fourth-quarter and full-year GDP data.
Today's Dow leader
Twenty-five of the 30 Dow stocks are up today. The leader is Boeing , up 1.92% to $137.77, n news that Cathay Pacific has ordered 21 777x's for a whopping $7.4 billion. The planes aren't expected to be built until 2020, with first delivery in 2021. Early orders are important in that they signal to other carriers that their competitors believe Boeing's offering is better than similar planes from rival Airbus. In other Boeing news, the company revealed in an interview yesterday that it is close to its goal of manufacturing 10 787 Dreamliners per month. This is a good sign that Boeing is hitting its stride and getting past all the bugs that have slowed the aircraft's production in 2013.
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The article Dow Jumps to All-Time High as GDP Growth Hits 4.1% originally appeared on Fool.com.Dan Dzombakcan be found on Twitter @DanDzombakor on his Facebook page,DanDzombak. He has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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