US stocks rise after positive economic reports

United States, 2nd October: US stocks kicked off on a positive note yesterday after positive news on US economy. 

United States, 2nd October: US stocks kicked off on a positive note yesterday after positive news on US economy.

Giant manufacturing companies in the US like General Electric Co. and Boeing Co. saw a rise in their shares reports of expansion in the factory activities in the month of September although a bit lower than the past month.

There has been a gain of 6.27 points in the S&P 500 Index to trade at 1,151.00 while the total gain at the Dow Jones Industrial Average has been of 0.49 percent or 53.39 points. The Nasdaq Composite Index progressed by 0.46 percent.

The major gains in the US stocks had been due the encouraging economic figures including spending data and personal income along with positive economic data from China.

There has been a growth of 0.4 percent in the consumer spending in the month of August this year after recording a similar growth in the month of July as well. There also has been a growth of 0.5 percent in the personal incomes in the month of August while the growth in incomes in July has been of 0.2 percent.

The predicted growth in income and spending was of 0.3 percent in August by Dow Jones Newswires.

Analysts at Charles Schwab stated that the US equity markets responded positively to the uncharacteristically strong growth in the month of September.

The US Commerce Department said that the there has been a marginal growth in the US economy in the second quarter of the current year. The GDP (Gross Domestic Product- a measure of output of services and goods in America) grew at a yearly rate of 1.7 percent in the second quarter this year. Meanwhile, the GDP had showed a growth of 3.7 percent in the first quarter of 2010.

The number of people filing fresh jobless benefit claims witnessed a downfall in the last week recording a third consecutive fall in the last four weeks, the official figures of the US Labor Department show.

The figures state that the unemployment claims saw a decline of 16,000 from the previous week to reach the figure of 453,000 in the week ending on September 25.

This was a further evidence of the fact that the US economy is recovering from the most threatening economic crisis, although at a slow speed.

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