Shares of industrial and transportation companies rose after a mixed gross-domestic product growth report.
The U.S. economy grew at a 6.5% rate in the second quarter and exceeded its pre-pandemic size, a report that hit the tape just as the fast-spreading Delta coronavirus variant clouds the outlook for the third quarter.
"The growth story is getting stretched into next year and this is very positive for risk appetite," said Edward Moya, senior market analyst at foreign-exchange brokerage OANDA Group, in a note to clients.
"Initial jobless claims still remain elevated above pre-pandemic levels and that suggests the economy is still far from achieving substantial progress in the labor market."
The longer the economy goes without operating at full capacity, the longer the Federal Reserve is likely to hold off on raising interest rates, potentially supporting stock and corporate profitability, according to Mr. Moya and others.
Shares of Ford Motor rose, bringing gains for the year to date to around 70%, after it posted a surprise second-quarter profit and boosted its earnings outlook for the year as it predicted an easing of pressure from a computer-chip shortage.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
07-29-21 1648ET
