Business Investment Returns
The U.S. economy grew at its fastest rate in 19 years in the third quarter, led by, of all things, business investment.
The 7.2% jump in GDP was led by an 11% increase in business investment and a 15% surge in equipment and software. Computer sales alone added half a percentage point to the GDP number.
The numbers were a welcome change from the last three years, when consumer spending was the only thing propping up the economy.
But the stock market's response to the numbers was muted, in part because of the belief that the third quarter's growth rate is not sustainable.
After the close, Brightpoint
During the day, Akamai
McData
BMC
Photon Dynamics
EDS
Sun
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, Wireless Facilities
and S1
beat estimates, while Sonic
met estimates.
soared 34% on its results.
fell 14% on a pricing dispute with EMC
that analysts said could hurt McData's quarter.
surged 9% on its results, while United Online
fell 10% on its results.
, InfoSpace
, NetScreen
, Akamai
, ESS Tech
, F5
, Overstock
and Cray
all rose on their results.
slipped on its earnings, and Ericsson
and Newport
finished down too.
rose 6% on a wireless partnership with TI
.