U.S. stocks advanced, after a two- day drop in the Standard & Poor’s 500 Index, as the economy grew more than first estimated and investors awaited Federal Reserve Chairman Ben S. Bernanke’s speech in two days.
The S&P 500 rose 0.1 percent to 1,410.81 at 9:31 a.m. New York time.
“You are right in that narrow little lane where nothing needs to move at this point,” said Madelynn Matlock, who helps oversee about $14.7 billion at Huntington Asset Advisors in Cincinnati. “People are actually waiting if anything comes out of Bernanke’s speech that is totally not expected. I don’t see any big initiative out of the Fed at this point. The economy is good enough that it’s not a disaster, yet it is slow enough that there’s no reason to crank up the anti-inflation machine.”
Gross domestic product climbed at a 1.7 percent annual rate from April through June, up from an initial estimate of 1.5 percent, revised Commerce Department figures showed today in Washington. The figure matched the median estimate in a Bloomberg survey. The revised data showed companies invested in new equipment at the slowest pace in almost three years.
Bernanke may shed light on monetary policy in a speech to central bankers on Aug. 31 in Jackson Hole, Wyoming. European Central Bank President Mario Draghi hit back at German criticism of his plan to intervene in bond markets and reminded Europe’s largest economy of its responsibility to anchor the euro.
The S&P 500 has risen 2.2 percent so far in August and is on pace for its third straight monthly advance. Technology, consumer discretionary and financial shares led the gains in the index, adding at least 2.7 percent and pacing advances among companies which are most-tied to the economy.
To contact the reporter on this story: Rita Nazareth in New York at firstname.lastname@example.org
To contact the editor responsible for this story: Lynn Thomasson at email@example.com