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US stocks set to rise after strong GDP report

US stocks set to rise after strong GDP report

Stocks were poised to open higher Friday after a report showed that the U.S. economy is growing.
The Commerce Department said that U.S. gross domestic product, the broadest measure of the economy, grew at an annual rate of 3.2 percent between October and December. That's up from the 2.6 percent growth in the previous quarter.
"A number above 3 percent should drive a stake through the heart of anyone who still thought that the economy was headed for a double-dip recession," said Phil Orlando, chief strategist at Federated Investors.
Ahead of the opening bell, Dow Jones industrial average futures were up 10 points, or 0.1 percent, to 11,954. Standard and Poor's 500 index futures were up 2, or 0.2 percent, to 1,298. Nasdaq 100 futures were up 7, or 0.3 percent, to 2,329.
Before the market opened, Ford Motor Co. reported earnings that fell short of analysts' expectations. The company fell 7 percent in pre-market trading.
Sara Lee Corp. announced a plan to split into two companies. One company, a food and retail business, will retain the Sara Lee name and will include brands Sara Lee, Jimmy Dean and Hillshire Farms. The other has yet to be named and will retain the current company's beverages and baked goods lines. Sara Lee fell 0.5 percent before the market opened.
Two giant technology companies reported earnings after the market closed Thursday. Amazon.com Inc. fell 8 percent after missing Wall Street's revenue target in its latest quarter. The company said that higher costs cut down profit margins. Microsoft Corp. lost 0.3 percent after it said that the profitability of its Windows division was falling.


Updated : 2020-12-02 21:45 GMT+08:00