U.S. GDP Growth Revised Higher to 3.9% as Global Economies Slowdown

Nichole Harper
25 Nov, 2014
New York City

September quarter economic growth in the U.S. was increased to annual rate of 3.9% from the previous estimate of 3.5% on higher spending by consumer and businesses. German economy expanded at 0.1% in the third quarter and European markets closed at a 2-month high.

[R]1:00 PM New York – September quarter economic growth in the U.S. was increased to annual rate of 3.9% from the previous estimate of 3.5% on higher spending by consumer and businesses. German economy expanded at 0.1% in the third quarter and European markets closed at a 2-month high.[/R]

Stocks traded sideways in New York and investors took in stride better-than-expected revision of the third-quarter economic growth.

On Wall Street trading, Tollbooth Index extended record level and gained 0.2% or 20.40 to 10,029.10.

S&P 500 index slid 1.52 or 0.07% to 2,067.85 and the Nasdaq Composite Index edged up 4.40 or 0.09% to 4,758.14.

In the second estimates U.S. economic growth in the third-quarter was revised higher to 3.9% after expanding at 3.5% in the second-quarter, the Department of Commerce announced.

The economy was expected to expand at 3.3% but larger than previously estimate consumer and business spending and higher restocking of inventories led to a higher growth.

The economy expanded at more than 3.5% for the fourth time in the past five quarters.

U.S. Movers

Campbell Soup Company ((CPB)), the canned food products maker said net sales in the first-quarter ending on November 2 jumped 4% to $2.25 billion from a year ago period.

Net income in the quarter surged 36% to $234 million or 74 cents a diluted share compared to $172 million or 54 cents from a same quarter last year.

Tiffany & Co ((TIF)), the jewellery and watch retailer said net sales in the third-quarter ending in October jumped 5% to $959.6 million from a year ago period. Comparable store sales in the quarter climbed 4%.

Net earnings in the quarter tumbled 60% to $38.3 million or 29 cents a diluted share compared to $94.6 million or 73 cents from a same quarter last year.

Workday Inc ((WDAY)), the cloud-based application provider reported total revenues in the third-quarter ending in October surged 68% to $215.1 million from a year ago period.

Net loss in the quarter widened to $59.9 million or 33 cents a diluted share compared to $47.5 million or 27 cents from a same quarter last year.

European Markets

Market indexes in Europe gained led by the advance in Germany. The second estimate of the economic expansion in the largest economy in the euro zone matched the previous estimate of 0.1% released on November 14.

The Statistical Office of the European Communities reported after preliminary estimate EU28 seasonally adjusted external current account surplus in the third-quarter narrowed to €7.8 billion from a surplus of €21.2 billion in the second-quarter.

In London trading, FTSE 100 index rose 0.2% or 17.15 to 6,746.94 and in Frankfurt the DAX index jumped 1.2% or 119.67 to 9,905.21.

In Paris, CAC 40 index increased 0.6% or 26.80 to 4,395.04.

De La Rue Plc, the U.K.-based currencies and security documents printer reported revenues in the year ending on September 27 dropped 8% to £214.9 million from £234 million a year ago period.

Net profit in the year plunged 36% from a year ago to £14.2 million compared to £22.2 million and diluted earnings per share decreased to 13.4 pence from 21.7 pence.

The bank note printer forecasted underlying operating profit for the year of about £20 million lower than the year ago period.

Kingfisher Plc, the U.K.-based home improvement retailer reported revenues in the third-quarter ending in September dropped 3.6% to £2.82 billion and profit in the quarter declined 11.8% to £225 million from a year ago period.

Total sales in France plunged 9.3% to £1.06 billion while sales from UK and Ireland jumped 4.8% to £1.15 billion. Sales from other international regions slumped 7.4% to £604 million from a year ago period.

Asian Markets

Stocks in Tokyo advanced and the Topix index closed at a high not seen since June 2008. The Topix index has nearly doubled in the last two years and jumped 20% since October after the Bank of Japan expanded its already large stimulus program.[/R]

Stocks in Tokyo extended gains and the broader Topix index closed at a high not seen since June 2008.

The Nikkei 225 Stock Average gained 56.46 or 0.3% to 17,413.97 and the broader Topix index increased 8.97 to 1,409.15.

The yen slipped 0.5% to close at 117.90 against one dollar.

In Mumbai trading, the Sensex Index slipped 161.49 or 0.6% to close at 28,338.05. The CNX Nifty fell 67.05 or 0.8% to 8,463.10.

Bharti Airtel Limited, the largest wireless service provider agreed to sell 4,800 telecom towers in Nigeria to American Tower Corp for about $1 billion.

Reliance Communications Limited, the second largest wireless carrier in India plans to raise $255 million to refinance of overseas loans that are maturing in the next few months.