Stocks are rising today even as the fiscal cliff draws nearer, thanks in part to the best GDP growth for the U.S. economy in almost a year.
The U.S. economy grew 2.7% from July through September, up from the 2% growth that was previously reported. The 2.7% growth is a vast improvement from the mere 1.3% growth of the previous quarter.
While consumer spending was down, a spike in exports was enough to lift America’s gross domestic product. However, if last week’s record-breaking Black Friday sales are any indication, then consumer spending could improve this quarter – fiscal cliff or no fiscal cliff.
The 2.7% GDP growth was the fastest the U.S. economy has grown since the fourth quarter of 2011.
The upward revision in last quarter’s GDP growth has been a nice boost for stocks today. As of 1 p.m. eastern time, the Nasdaq had gained 0.5%, the S&P 500 0.3%, and the Dow Jones Industrial Average 0.2%.
Pandora (NYSE: P) and Research In Motion (NASDAQ: RIMM) are two companies making big moves today.
Shares of Pandora, the online radio company that has struggled mightily since going public last year, are up 7.5% ahead of next Tuesday’s third-quarter earnings report.
Research In Motion shares, meanwhile, have climbed 6.4% after Goldman Sachs (NYSE: GS) raised its rating from “Neutral” to “Buy” for the stock. The company’s Blackberry 10 launch on January 30 is the catalyst behind the improved rating.