Capt'nAmerica
10-30-2003, 10:24 AM
The gross domestic product jumped to an annualized growth rate of 7.2% in the third quarter. ExxonMobil misses the Street's estimate. Strong Funds chairman could be charged.
Times are supposed to be good, but not this good.
The economy grew like gangbusters in the third quarter, the fastest pace since 1984, the government said this morning, sending stocks higher at the open.
The gross domestic product grew at an annualized rate of 7.2% last quarter, the Commerce Department reported, up from 3.3% annualized growth in the second quarter. Economists were expecting the economy to grow at a still-very-strong 6% rate, but this number blew away forecasts.Money 2004.
Smarter, faster and easier
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Signs of recovery should be bright news for stocks, John Brady, senior vice president at Man Financial, told CNBC’s “Squawk Box.” “The bulls will be firmly in control of stocks and stock futures today,” Brady said. The big growth with soon translate into big job creation, John Lonski, chief economist at Moody’s investors service, told “Squawk Box.”
“This is excellent news, without any question,” Lonski said. “It reflects a strengthening of corporate revenues, which would help boost profit margins and with these gains in business investment spending, the return of employment growth is inevitable.” Business investment rose to an annualized rate of 11.1% from July to September, while equipment and software spending jumped 15.4%, the Commerce Department said.
But there’s always some room for a bit of cloud in a silver report. The third-quarter number is astonishing, but it’s a blip, former Honeywell (HON, news, msgs) Chairman Larry Bossidy told “Squawk Box.” With some residual trouble in Iraq, negative campaigning next year and sluggish job growth, next year’s growth is more likely to be 3% to 3.5%, Bossidy said.
Also this morning, weekly claims for first-time unemployment benefits fell to 386,000 from an upwardly revised 391,000 the week before, the Labor Department said. Economists were expecting claims to come in at 385,000
Times are supposed to be good, but not this good.
The economy grew like gangbusters in the third quarter, the fastest pace since 1984, the government said this morning, sending stocks higher at the open.
The gross domestic product grew at an annualized rate of 7.2% last quarter, the Commerce Department reported, up from 3.3% annualized growth in the second quarter. Economists were expecting the economy to grow at a still-very-strong 6% rate, but this number blew away forecasts.Money 2004.
Smarter, faster and easier
than ever.
Signs of recovery should be bright news for stocks, John Brady, senior vice president at Man Financial, told CNBC’s “Squawk Box.” “The bulls will be firmly in control of stocks and stock futures today,” Brady said. The big growth with soon translate into big job creation, John Lonski, chief economist at Moody’s investors service, told “Squawk Box.”
“This is excellent news, without any question,” Lonski said. “It reflects a strengthening of corporate revenues, which would help boost profit margins and with these gains in business investment spending, the return of employment growth is inevitable.” Business investment rose to an annualized rate of 11.1% from July to September, while equipment and software spending jumped 15.4%, the Commerce Department said.
But there’s always some room for a bit of cloud in a silver report. The third-quarter number is astonishing, but it’s a blip, former Honeywell (HON, news, msgs) Chairman Larry Bossidy told “Squawk Box.” With some residual trouble in Iraq, negative campaigning next year and sluggish job growth, next year’s growth is more likely to be 3% to 3.5%, Bossidy said.
Also this morning, weekly claims for first-time unemployment benefits fell to 386,000 from an upwardly revised 391,000 the week before, the Labor Department said. Economists were expecting claims to come in at 385,000