Let’s see if we have this right: Bad news on the economic front, in the form of a weaker-than-expected GDP report from the Commerce Department, lifted the stock market higher.
Yes indeed, that’s correct: Investors took the news as as sign that the Fed would hold off any move to “taper” its easing policy, and the result was a second straight day of broad gains.
The Dow Jones Industrial Average led the way, rising 1.02% to close at 14910.40, with all but two components up on the day. The S&P 500 rose 0.96% to 1503.26, while the Nasdaq managed to gain 0.85% to close at 3376.22.
In sector news, gold prices fell to a 34-month low of just over $1,223 an ounce, and gold mining companies saw shares fell. Barrick Gold (ABX, -8.26%), Goldcorp (GG, -4.65%) and Yamana Gold (AUY, -4.60%) were all down on the day. The SPDR Gold Shares Trust ETF (GLD) lost more than 4% and is now down 27% year-to-date.
In corporate news, shares of internet radio provider Pandora (P) rose more than 8% after Cowan upgraded the company shares to “outperform”.
Apollo Group (APOL), which owns for-profit University of Phoenix, slid more than 10% after reporting disappointing quarterly profits. Sector mate and competitor Strayer (STRA) slid a bit more than 3% on the news.
Shares of gun manufacturer Smith & Wesson (earnings and sales guidance well above forecasts, and indicating it can’t fill demand.
Consumer foods product giant General Mills (
- Himax Technologies (HIMX): Up 11.20% (55 cents) to $5.46
- Sunpower (SPWR): Up 7.33% ($1.39) to $20.29
- Brocade (BRCD): Up 6.20% (33 cents) to $5.65
- Walter Energy (WLT): Down 11.54% ($1.31) to $10.04
- Silver Wheaton (SLW): Down 7.73% ($1.49) to $17.78
- Five Below (FIVE): Down 6.34% ($2.42) to $35.78
Marc Bastow is an Assistant Editor at InvestorPlace.com. As of this writing he did not hold a position in any of the aforementioned securities.