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Dow Gains as Report Shows Fastest Growth in Third Quarter in 20 Years
CNSNEWS.com ^ | 12/23/03 | Melanie Hunter

Posted on 12/23/2003 10:53:03 PM PST by kattracks

(CNSNews.com) - The Dow nosed up for a sixth day in a row Tuesday, hitting a 19-month high. On the same day, government reports showed the economy grew at its fastest rate in nearly 20 years in the third quarter.

The Commerce Department said the gross domestic product advanced at an 8.2 percent annual rate in the through months from July through September, the same as estimated last month and more than double the 3.1 percent pace in the second quarter.

The Dow Jones Industrial Average ended up 3.26 points to close at 10,341.26.

The Nasdaq Composite Index also saw a lift because of strong technology stocks. It gained 18.98 points, closing at 1,974.78.

The Standard & Poor's 500 Index finished also on a 19-month high, gaining 3.08 points to close at 1,096.02.

"The market's very quiet, and I don't think there's going to be much of a catalyst to drive it until next year when we enter earnings warning season," Jeff Kleintop, chief investment strategist at PNC Advisors in Philadelphia, which oversees $51 billion in assets, told Reuters.

"Between now and year end, we may see the market drift higher just because we continue to see pretty substantial inflows, particularly in mutual funds," Kleintop said.

The stock market will close at 1pm on Christmas Eve and will be closed on Christmas Day. The stock market will close early on Friday also.

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TOPICS: Business/Economy; Front Page News; News/Current Events
KEYWORDS: busheconomy; bushrecovery; dow10000

1 posted on 12/23/2003 10:53:04 PM PST by kattracks
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To: kattracks
Wath the Fed for reports of inflation. Interest rate hikes on the horizon.
2 posted on 12/23/2003 10:58:07 PM PST by Metternich
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To: seamole
But November CPI-U is up 1.8% YOY.

The mid-99 discount rate hikes started with CPI-U up only 2% or so YOY.
4 posted on 12/23/2003 11:10:51 PM PST by Metternich
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To: seamole
Sell-off on the 10- and 30-year bond today. Watch for when the 10-year yield crosses 5%. Interest rate hike coming soon then.
6 posted on 12/23/2003 11:16:10 PM PST by Metternich
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To: Metternich
Welcome to the forum.
7 posted on 12/24/2003 4:30:40 AM PST by Coop (God bless our troops!)
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To: Metternich
I agree. There will be a rate hike in the next six months, either because inflation is creeping up or because interest rates are rising and the Fed will have no choice but to raise the discount rate.
8 posted on 12/24/2003 4:38:50 AM PST by Toskrin
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