Investing.com – U.S. stocks closed higher on Thursday as upbeat economic data showing the U.S. economy expanded at a faster pace than expected in the second quarter offset investor uncertainty over how President Donald Trump’s plans for tax reform will evolve into legislation.
The Dow Jones Industrial Average closed higher at 22381. The S&P 500 closed 0.12% higher while the Nasdaq Composite closed at flat 6453.45.
In what a busy day for top-tier economic data releases, investors had to contend with economic reports showing initial jobless claims undershot expectations while second quarter economic growth was better than expected.
Gross domestic product increased at a 3.1% annual rate in the April-June period, the Commerce Department said in its third estimate on Thursday, beating a previous estimate of 3%.
Fresh on the heels of the upbeat economic growth data, a labor market report showed the number of Americans filing for unemployment benefits rose more than expected last week.
The U.S. Department of Labor reported Thursday that initial jobless claims increased 12,000 to a seasonally adjusted 272,000 for the week ended Sept. 23, missing forecasts of a 10,000 increase.
Sentiment on US stocks eased somewhat as investors questioned whether the lack of details on how tax reform will be funded would invite pressure from support industry groups and lobbyists.
"We shall wait and see how Trump’s plans evolve into legislation,” said Deutsche Bank’s strategist Jim Reid in a note on Thursday. “Our U.S. team’s early take is that they see a prospect of some reforms occurring at the corporate level (particularly for small corporates), but the potential for substantive reform of personal tax is much lower.”
In corporate news, shares of McDonald’s rose sharply, as expectations grow that McDonald’s new burger will drive the top-line growth.
'Bulls and Bears' on Wall Street
The top Dow gainers for the session: McDonald’s Corporation (NYSE:MCD) up 2.2%, Exxon Mobil Corporation (NYSE:XOM) up 0.9% and Home Depot Inc (NYSE:HD) up 0.9%
Walt Disney Company (NYSE:DIS) down 1.2%, United Technologies Corporation (NYSE:UTX) down 1.1% and Apple Inc (NASDAQ:AAPL) down 0.6%, were among the worst Dow performers of the session.