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Dow crosses 18,000 for the first time

Tuesday, December 23, 2014 - 01:56

The Dow Jones Industrial Average tipped over the 18,000 level for the first time after third-quarter GDP was revised up to five percent, above the four point three percent expected rate. Leah Duncan reports.

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Pop those champagne corks -- the Dow blew past the 18,000 mark for the first time as it and the S&P 500 extended gains for the fifth straight session. A shockingly strong report on third quarter GDP got investors buying. The economy grew 5 percent, the fastest pace in over a decade. Barclays Capital's chief U.S. economist Michael Gapen: SOUNDBITE: MICHAEL GAPEN, CHIEF U.S. ECONOMIST, BARCLAYS CAPITAL (ENGLISH) SPEAKING: "I think the main takeaway is that the consumer was on much more solid footing in the third quarter than the initial date releases suggested." In a day loaded with economic data, cheaper gas and an improved labor market drove consumer spending and consumer sentiment higher. The rosy numbers offset a fall in durable goods and new home sales. Consumers haven't been buying many toys from Mattel. So the toy maker is cutting back and placing limitations on meetings in an attempt to drive creativity and put the focus on toys, according to the Wall Street Journal. Leading the S&P 500: Chesapeake Energy. The oil and gas company is buying back $1 billion of its stock. It also sold nearly $5 billion of shale assets to Southwestern Energy. Keurig Green Mountain looking red-faced. The maker of the K-cup coffee pods is recalling more than 7 million coffee makers. The brewing machines could overheat and burn users by spraying them. GoPro shares got some relief after a tough autumn. Investors scooped up shares that were freed up after the wearable camera maker's post-IPO lock-up period expired. In Europe, stocks edged higher. The prospect of early elections in Greece hurt shares there, and that capped gains in European equities.

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Dow crosses 18,000 for the first time

Tuesday, December 23, 2014 - 01:56