GDP, VOD News Lifts Markets: Thursday’s IP Market Recap

by Marc Bastow | August 29, 2013 4:58 pm

InvestorPlace Market RecapEconomic and corporate news — not political news — drove the markets on Thursday, as the Bureau of Economic Analysis revised its April-June gross domestic product annual rate to 2.5% vs 1.7%, suggesting the economy is expanding faster than originally forecast.

The unemployment picture brightened at bit too, as jobless claims fell to 331,000 last week, the fewest weekly claims in 5 years.

The combination helped lead the markets higher, as the Nasdaq had raced ahead 0.75% to close at 3620.30, while the S&P 500 gained 0.20% to 1638.17, and the Dow Jones Industrial Average ended up 0.11% at 14840.95

Vodafone (VOD[1]) shares soared more than 8% on news[2] that it would sell its 45% stake in Verizon Wireless back to Verizon (VZ[3]). VZ shares moved ahead more than 2% on the news, making it the leading gainer on the Dow.

Clothing retailer Guess (GES[4]) soared nearly 13% after announcing a beat on second quarter earnings[5] and raising its full-year guidance. Sector mates American Apparel (APP[6], +2.67%) and Urban Outfitters (URBN[7], +1.29%) rose on the news.

The solid economic reports helped to lift homebuilders, with Lennar (LEN[8], +3.16%), KB Homes (KBH[9], +2.18%) and M/I Holdings (MHO[10], +1.79%) all higher on the day.

Tech stocks found the going better, too, with gains in Facebook (FB[11], 1.81%), and Microsoft (MSFT[12], +1.61%) leading the rebound.

On the down side, energy stocks gave up some of Wednesday’s gains, as oil prices fell slightly, with Exxon Mobil (XOM[13]) Chevron (CVX[14]), and Royal Dutch Shell (RDS.A[15], RDS.B[16]) all down more than 1%.

Three Up

Three Down

Marc Bastow is an Assistant Editor at As of this writing he was long VZ, MSFT, and XOM.

  1. VOD:
  2. on news:
  3. VZ:
  4. GES:
  5. a beat on second quarter earnings:
  6. APP:
  7. URBN:
  8. LEN:
  9. KBH:
  10. MHO:
  11. FB:
  12. MSFT:
  13. XOM:
  14. CVX:
  15. RDS.A:
  16. RDS.B:
  17. ZLC:
  18. Z:
  19. DDD:
  20. JASO:
  21. ARNA:
  22. CLF:

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