The gross domestic product shrank at a 0.3% annual rate in the 3rd quarter which was better than expected. Investors were cautiously optimistic about yesterday's Fed rate cut to pull the economy out of the recession. The Dow surged more than 200 points to 9148 while Nasdaq leaped 37 points to 1694.
On the upside
Casino operators continued to rally with shares of Las Vegas Sands (NYSE: LVS) and Wynn Resorts (Nasdaq: WYNN) adding to yesterday's gains. In a sign of a credit thaw, MGM Mirage (NYSE: MGM) secured funding to complete scaled back resorts.Genco Shipping & Trading (NYSE: GNK) posted better than expected profits. Long-term contracts helped offset spot freight delivery prices which tumbled in recent months.
Shares of First Solar (Nasdaq: FSLR) and other solar panel-related companies soared. Observers credited the gains to Obama's televised campaign ad which profiled the growing use of solar panels.
On the downside
Exxon Mobil (NYSE: XOM) posted a record $15.8 billion in profits for the 3rd quarter. Investors expected a modest outlook for the oil giant due a sharp decline in crude oil prices.Motorola (NYSE: MOT) reported lower sales and a sizable loss. The company also postponed the planned spin-off of its troubled cell phone division.
Shares of Cigna (NYSE: CI) fell due to a drop in 3rd quarter profits, a decline in membership, and poor performance by its reinsurance segment.
In the broad market, advancing issues outpaced decliners by a margin of 7 to 1 on the NYSE and by 6 to 1 on Nasdaq. The Russell 2000 which tracks small cap stocks surged 16 points to 506.
