Sponsored by Digital Look Events

US midday: Stocks continue gains

News for Spread Betters

PreviousPrevious
NextNext

There's a new Investor Edition of CMC Markets' spread betting platform... and it's exclusive to DigitalLook.com users...

Get full details about Marketmaker:Investor Edition here. Advertisement

Date: Wednesday 30 Apr 2008

LONDON (ShareCast) - US stocks are surging forward helped by better-than–expected economic and corporate reports ahead of the Fed’s interest rate decision.

The Commerce Department said gross domestic product grew a better-than-expected 0.6% in the first quarter, the same as the last quarter of 2007. The Chicago purchasing managers' index came in at 48.2 in April, instead of the expected 48.2.

But the direction of the market will hinge on the Federal Reserve’s interest rate decision later in the afternoon. The central bank is expected to cut rates by a quarter point to 2% but many will keep an eye out for the Fed's statement, which will give guidance on future rate decisions.

Across the markets, the Dow Jones is surging ahead by 108 points to 12,940 with the Nasdaq rising 14 points to 2440. The S&P 500 is up 6 points.

In corporate news, General Motors rose after it reported a loss of $3.3bn in the first quarter but excluding special items the loss was less than expected.

Consumer products maker Procter & Gamble also moved forward after it said third quarter earnings rose 8%.

Software maker SAP was lower after its profit slipped in the first quarter while media firm Time Warner reported lower quarterly earnings that missed estimates.