Reuters - Video

EDITION: U.S. | U.K. | IN

Business

Economy is the gift that keeps giving

Friday, Dec 20, 2013 - 02:14

Dec. 20 - Summary: Wall Street closed out one of its best weeks of the year with a surge with the economy stronger than first thought; BlackBerry surges despite dismal quarter; Amazon jumps above $400; Oracle makes another step to the cloud. Conway G. Gittens reports.

▲ Hide Transcript

View Transcript

Better than expected U.S. growth giving investors more hope that this economy is strong enough to withstand the wind-down of Federal Reserve stimulus. The Dow and the S&P 500 rallied to new lifetime highs and the Nasdaq closes at a 13-year peak. It was one of the year's best weekly gains for the Dow and the Nasdaq forged ahead by 2.6 percent. Gross domestic product, which measures the rate of economic activity, was revised to a 4.1 percent annual growth rate in the third quarter. That's the fastest pace in almost two years and higher than the 3.6 percent pace reported earlier this month. Business investment and consumer spending were stronger than previously thought. And Clark Winter of Winter Enterprises says the momentum is strong enough to extend into 2014. SOUNDBITE: CLARK WINTER, FOUNDER, WINTER ENTERPRISES (ENGLISH) SPEAKING: "Interest rates are likely to remain low for a long time because the Fed has no reason to raise them, and they still have tools at their command that they can use to further stimulate. I think what's happening is, people are eventually regaining confidence." That confidence - leading the S&P 500 to its best week in five months. BlackBerry reported a massive quarterly loss due to an inventory write-down caused by poor demand for its phones. But the company announced a deal that will limit manufacturing costs going forward. That news overshadowed the results sending the stock 15-1/2 percent higher in U.S. trade. It's just five days before Christmas and Amazon investors are getting an early gift. Shares of the Internet retailer topped $400 for the first time. Amazon is expected to be a winner as more customers shift to the web to do their holiday shopping. Red Hat was another hot tech stock - surging more than 14 percent after its results topped forecasts. In other earnings, Walgreens posted higher sales and profits despite a squeeze from deeper discounting. Shares climbed almost four percent. Oracle continues it buying spree - looking to the cloud. The software giant is buying advertising software maker Responsys for $1.5 billion. Responsys shares gained 40 percent on word of the deal, but Oracle was down for the day. In Europe, markets closed out their best week in eight months.

Economy is the gift that keeps giving

Friday, Dec 20, 2013 - 02:14

Top News »

Investing 201 »

Arian Foster = BlackBerry? Arian Foster = BlackBerry?

Fri, Oct 25, 2013 - (3:16)

Don’t miss these red flags for IPOs Don’t miss these red flags for IPOs

Thu, Oct 10, 2013 - (2:34)

Copycat currency trading Copycat currency trading

Wed, Oct 02, 2013 - (2:28)

When to dump a winner When to dump a winner

Tue, Sep 24, 2013 - (1:55)

Where gold might again attract Jim Rogers Where gold might again attract Jim Rogers

Thu, Sep 19, 2013 - (2:05)

Why savings interest rates won't budge Why savings interest rates won't budge

Fri, Sep 13, 2013 - (2:09)

Buy local? ETFs try the trend Buy local? ETFs try the trend

Thu, Sep 05, 2013 - (2:42)

The better bond funds The better bond funds

Wed, Aug 07, 2013 - (2:40)

Best bargain in 40 years? European stocks Best bargain in 40 years? European stocks

Thu, Aug 01, 2013 - (2:24)

Invest like an activist Invest like an activist

Fri, Jul 26, 2013 - (2:49)

Money Clip »

3 things to do before disaster strikes 3 things to do before disaster strikes

Wed, Sep 18, 2013 - (1:39)

Your must-do money list Your must-do money list

Wed, Sep 11, 2013 - (1:24)

The worst "best" financial advice The worst "best" financial advice

Wed, Sep 04, 2013 - (1:42)

Forget gold: The case for REITs Forget gold: The case for REITs

Fri, Apr 26, 2013 - (1:19)

3 rules for buying a house now 3 rules for buying a house now

Thu, Apr 18, 2013 - (1:39)

“Stalking” your dream home - Money Clip “Stalking” your dream home - Money Clip

Wed, Mar 27, 2013 - (2:50)

3 hidden tax deductions - Money Clip 3 hidden tax deductions - Money Clip

Thu, Mar 21, 2013 - (1:33)

Reuters Investigates »

Re-homing victim: "I could have been dead" Re-homing victim: "I could have been dead"

Wed, Feb 19, 2014 - (8:24)

Cops and loggers in the Amazon rainforest Cops and loggers in the Amazon rainforest

Fri, Jan 10, 2014 - (4:01)

"Passed around like a dog" "Passed around like a dog"

Thu, Aug 29, 2013 - (6:32)

Adopted, then abandoned online Adopted, then abandoned online

Thu, Aug 29, 2013 - (13:21)

How the DEA keeps its secrets secret How the DEA keeps its secrets secret

Mon, Aug 05, 2013 - (1:36)

How education lost its role as the great equalizer - Reuters Investigates How education lost its role as the great...

Mon, Dec 17, 2012 - (7:52)

Jihad Jane: From abused child to American jihadist - Reuters Investigates Jihad Jane: From abused child to American...

Sat, Dec 08, 2012 - (10:01)

Jihad Jane: The order to kill - Reuters Investigates Jihad Jane: The order to kill - Reuters...

Sun, Dec 09, 2012 - (10:39)

Moving Pictures »

Still missing – MH370 Still missing – MH370

Fri, Sep 05, 2014 - (2:05)

Images of August Images of August

Fri, Aug 29, 2014 - (1:00)

Burning Together Burning Together

Mon, Sep 01, 2014 - (2:23)

Mending dolls, teddies and hearts Mending dolls, teddies and hearts

Fri, Aug 22, 2014 - (3:12)

"Old timers" sail the Chesapeake Bay "Old timers" sail the Chesapeake Bay

Mon, Aug 11, 2014 - (2:27)

Burned memories Burned memories

Fri, Aug 08, 2014 - (3:02)

Images of July Images of July

Thu, Jul 31, 2014 - (1:20)

World Cup: passion on the pitch World Cup: passion on the pitch

Fri, Jul 11, 2014 - (1:00)

A refugee in America gives back A refugee in America gives back

Wed, Jul 02, 2014 - (3:25)

A long search for refuge A long search for refuge

Fri, Jun 20, 2014 - (3:04)