Oct. 27 (Bloomberg) -- U.S. stock futures maintained gains after the government said the economic expansion quickened in the third quarter, holding an earlier rally triggered by an agreement to expand the European bailout fund.
Futures on the Standard & Poor’s 500 Index expiring in December climbed 2.4 percent to 1,267.1 at 8:32 a.m. in New York.
Gross domestic product, the value of all goods and services produced, rose at a 2.5 percent annual rate, matching the median forecast of economists surveyed by Bloomberg News and up from a 1.3 percent gain in the prior quarter, Commerce Department figures showed today in Washington. Household purchases, the biggest part of the economy, increased at a more-than-projected 2.4 percent pace.
The S&P 500 has rebounded 13 percent since Oct. 3, when it closed at the lowest level since September 2010. The index is up 9.8 percent in October, poised for its best monthly rally since 1991. The advance has been fueled by better-than-estimated corporate earnings and economic data and growing confidence that European leaders would make progress in combating the sovereign debt crisis.
Almost half of the companies in the S&P 500 have released quarterly results since Oct. 11, and about 75 percent have beaten the average analyst estimate, data compiled by Bloomberg show. Net income has grown 15 percent for the group on a 10 percent increase in sales.
The Citigroup Economic Surprise Index for the U.S. this week climbed to the highest level in six months, reaching 17 on Oct. 24. The index increases when data exceeds economists’ estimates. The gauge has rebounded from minus 117.20 on June 3, when it showed reports were trailing the median economist projection in Bloomberg surveys by the most since January 2009.
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