NEW YORK (AP) — U.S. stocks opened higher on Friday after three days of losses. Investors were encouraged by a report that showed U.S. economic growth was faster in the spring than previously estimated. Nike jumped after posting strong earnings.
KEEPING SCORE: The Standard & Poor’s 500 index climbed 17 points, or 0.9 percent, to 1,949 as of 10:07 a.m. Eastern. The Dow Jones industrial average gained 190 points, or 1.2 percent, to 16,395 points. The Nasdaq composite climbed 43 points, or 0.9 percent, to 4,778.
SPORTSWEAR SPURT: Nike soared after the company’s earnings surpassed analysts’ expectations. Nike climbed $9.45, or 8.2 percent, to $124.25.
GROWTH REVISION: The U.S. economy expanded at an annual rate of 3.9 percent in the April-June quarter, up from a previous estimate of 3.7 percent, the Commerce Department reported Friday. The strength came from additional gains in consumer spending, business investment and residential construction.
RATE RISE COMING: Federal Reserve Chair Janet Yellen said in a speech late Thursday that she expects the Fed to begin raising interest rates by the end of the year. She suggested global economic weakness won’t be significant enough to alter the central bank’s plan to raise its key short-term rate from zero by December. Record low interest rates since the 2008 global financial crisis have been a boon for stock markets, underpinning a bull market that has run for six and a half years.
EUROPE’S DAY: France’s CAC 40 jumped 3.7 percent, while Germany’s DAX climbed 3 percent. Britain’s FTSE 100 gained 2.5 percent.
AUTOS SURGE: Automakers in Germany rebounded after slumping this week in the wake of the emissions-rigging scandal at Volkswagen. The company is expected to announce the appointment of a new CEO on Friday. Germany’s BMW rose 4 percent, and Daimler, the maker of Mercedez-Benz cars, rose 4.1 percent. French companies Renault and Peugeot Citroen climbed 3.9 percent and 2.8 percent, respectively.
BONDS, CURRENCIES: U.S. government bond prices fell. The yield on the benchmark 10-year Treasury note rose to 2.16 percent from 2.13 percent late Thursday. The euro was little changed at $1.1187 while the dollar edged up to 120.60 yen.
ASIA’S DAY: Japan’s Nikkei 225 finished up 1.8 percent. South Korea’s Kospi fell 0.2 percent and Hong Kong’s Hang Seng inched up 0.4 percent. China’s Shanghai Composite dropped 1.6 percent.
ENERGY: Benchmark U.S. crude was up $1.06 at $45.94 a barrel on the New York Mercantile Exchange. Brent Crude, a benchmark for many international oils, rose 50 cents to $49.36 a barrel in London.
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