Dow Rises 189 After GDP News

Early news on shrinking GDP can't keep indices from rising
By Nick McMaster,  Newser Staff
Posted Oct 30, 2008 3:29 PM CDT
Traders gather at a post on the floor of New York Stock Exchange today.   (AP Photo)
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(Newser) – The markets held ground after an early rally today, with investors shrugging off a smaller-than-expected fall in third-quarter US gross domestic product and remaining cautiously optimistic over yesterday’s Fed rate cut, MarketWatch reports. The Dow closed up 189.73 at 9,180.69. The Nasdaq rose 41.31 to 1,698.52, and the S&P 500 climbed 24.00 to 954.09.

Jobless claims held steady last week, the Labor Department reported, and though economists had predicted a drop, many investors are waiting for the October unemployment report, due next Friday. Credit markets continued to slowly thaw, with the 3-month Libor falling to 3.1925% from 3.42% yesterday, its 14th decline in the past 14 days.