Page 25 - ARUBA TODAY

BUSINESS Thursday 31 augusT 2017
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Stocks climb as stronger economic growth cheers investors

NEW YORK (AP) — U.S. kept the market afloat
stocks climbed Wednes- is the strong economic
day as investors cheered data,” said Brent Schutte,
a report of stronger eco- chief investment strategist
nomic growth. Technology at Northwestern Mutual
companies, retailers and Wealth Management. With
travel providers all made more economic reports
solid gains. coming over the next few
The Commerce Depart- days, Schutte said investors
ment raised its estimate will be looking for evidence
for economic growth and of higher pay and greater
said the U.S. gross domestic inflation, and said stocks
product grew at its fastest should keep rising as long
pace in two years between as the economy remains in
April and June. Stocks were good shape and inflation
wobbly at the outset, but doesn’t pick up.
investors’ concerns about The Standard & Poor’s 500
tensions between the U.S. index climbed 11.29 points,
and North Korea appeared or 0.5 percent, to 2,457.59.
to ease and stocks moved The Dow Jones industrial
higher as the day wore average picked up 27.06
on. Along with technology points, or 0.1 percent, to
companies and consumer- 21,892.43. The Nasdaq
focused firms, health care composite gained 66.42 Trader Timothy Nick, left, and specialist Robert Tuccillo work on the floor of the New York Stock
companies and banks fin- points, or 1.1 percent, to Exchange. U.S. stocks climbed Wednesday as investors cheered a report of stronger economic
ished higher. Big names 6,368.31 as technology growth. (AP Photo/Richard Drew)
like Microsoft, Amazon and companies rose for the
Facebook made some of third day in a row. The Rus- The government raised its when growth was 1.2 per- tries including construction,
the biggest gains. sell 2000 index of smaller- GDP projection from last cent. Meanwhile, private manufacturing and leisure
“For all the tough times company stocks added month, and the second- businesses added 237,000 and hospitality, according
we’ve had the last couple 7.64 points, or 0.6 percent, quarter estimate is much jobs in August with broad to a survey by payroll pro-
of weeks, the thing that’s to 1,391.32. better than the first quarter, gains across several indus- cessor ADP.q
US economic growth upgraded to 3 percent rate in Q2

grow close to 3 percent this was revised to a decline
quarter. at a 0.3 percent rate. The
For the second quarter, the downgrade reflects a 1.7
government estimated that percent fall in spending
consumer spending grew by state and local govern-
at a 3.3 percent rate, the ments. This was the sec-
best showing in a year and ond of three estimates the
up from an initial estimate government will provide
of 2.8 percent growth. for second quarter growth.
Much of the strength came Even with the upward revi-
from a sharp upward revi- sion, the weak start to the
sion in spending on autos, year means that growth
which the government ini- over the past six months
tially estimated as declin- has averaged 2.1 percent,
ing in the spring. the same modest pace
Investment by businesses seen for the recovery that
also improved to growth began in mid-2009.
of 6.9 percent, reflecting During last year’s presi-
higher spending on struc- dential campaign, Don-
tures, equipment and intel- ald Trump attacked the
In this Thursday, Aug. 24, 2017, photo, Kathy Tringali, right, a recruiter for Big 5 Sporting Goods, talks
to job seeker Jarrell Palmer during a job fair, in San Jose, Calif. On Wednesday, Aug. 30, 2017, the lectual property. Obama administration’s
Commerce Department issues the second of three estimates of how the U.S. economy performed Spending by governments, economic record, pledg-
in the April-June quarter. which had grown 0.7 per- ing to double GDP growth
(AP Photo/Marcio Jose Sanchez) cent in the initial estimate, to 4 percent or better. q
By MARTIN CRUTSINGER at an annual rate of 3 per- rate in the January-March
AP Economics Writer cent in the April-June quar- quarter was a lackluster 1.2
WASHINGTON (AP) — The ter, the Commerce Depart- percent.
U.S. economy rebounded ment reported Wednes- Paul Ashworth, chief U.S.
sharply in the spring, grow- day. It was the best show- economist at Capital Eco-
ing at the fastest pace in ing since a 3.2 percent gain nomics, said he believed
more than two years amid in the first quarter of 2015. that the strength in con-
brisk consumer spending The result is a healthy up- sumer spending should re-
on autos and other goods. ward revision from the gov- sult in an “even stronger
The gross domestic prod- ernment’s initial estimate of hand-off” for growth going
uct, the broadest measure 2.6 percent growth in the into the current quarter.
of economic health, grew second quarter. The growth He predicted GDP would