U.S.GDP Expands at 1.7% Rate, Private Sector Employment Expands

Nichole Harper
31 Jul, 2013
New York City

Stocks on Wall Street advanced after the first estimate for the second quarter economic growth showed an increase of 1.7%. A survey of private sector showed an increase in payrolls by 200,000. Comcast, Symantec and Garmin and MasterCard jumped after earnings reports.

[R]1:35 PM New York – Stocks on Wall Street advanced after the first estimate for the second quarter economic growth showed an increase of 1.7%. A survey of private sector showed an increase in payrolls by 200,000. Comcast, Symantec and Garmin and MasterCard jumped after earnings reports.[/R]

U.S. stocks advanced after economy expanded at a faster than expected pace in second quarter and investors await Fed report later in the afternoon.

Gross domestic product in the second quarter to June rose 1.7% at annual rate adjusted for seasonality after rising at 1.1% rate in the previous quarter, Commerce Department said today.

Consumer spending, the largest component of the economy, increased at a slower pace of 1.8% after rising at 2.3% in the previous quarter.

Federal spending dropped at an annual pace of 1.5% after falling at 8.4% in the first quarter and dropping at 13.9% in the last quarter of 2012.

The government also adjusted its estimate of the economy dating back to 1929 after it implemented new methodology that also accounts for research and development spending for the first time.

A private employment survey also indicated U.S. employers added 200,000 workers in July, ADP Research Institute said today.

The private survey is scheduled to be followed by the closely watched government report on August 2 that is estimated to show employment in the economy to increase 185,000 in July.

U.S. Stocks in Review

Air Products & Chemicals Inc increased 3% and activist investor Bill Ackman controlled Pershing Square Capital Management LP accumulated 9.8% stake in the industrial-gas maker.

Comcast increased 5% after the largest cable company reported better-than-expected earnings for the seventh quarter in a row.

Garmin Ltd gained 4% after the maker of navigation devices reported better than expected earnings and said it expanded its global market share.

Genworth Financial Inc declined 3% after the insurance company reported less than expected 27 cents earnings per share.

MasterCard increased 2% after the second largest payment processor reported better than expected earnings.

Symantec Corp soared 8% after the maker of security software reported higher than expected fiscal-first quarter earnings