US STOCKS rise as GDP offsets taper talk

U.S. stocks jumped Wednesday after a revision in economic growth calmed concern about U.S. monetary policy.

Gross domestic product expanded 1.8% from January through March, down from an earlier estimate of 2.4%, the Commerce Department reported.

The S&P 500 climbed 16.23 points, or 1%, to 1,604.26.

The Nasdaq Composite added 29.22 points, or 0.9%, to 3,377.11.

On Wednesday, Treasury prices were on track for their first gain in eight days, with the 10-year Treasury note yield used in determining rates on mortgages and other consumer loans at 2.544%.

Federal Reserve Bank of Richmond President Jeffrey Lacker said he expects the U.S. expansion to remain “sluggish” for “a couple more years,” and today’s downward revision to first-quarter growth is in line with his outlook. Lacker said he sees growth of about 2.25 percent next year.

Citigroup Inc. and Bank of America Corp. paced an advance in banks, climbing at least 0.8%.

Johnson & Johnson, Boeing Co. and Microsoft Corp. jumped at least 2.2% to lead gains in the the Dow Jones Industrial Average.

Barrick Gold Corp. and Newmont Mining Corp. fell more than 5%, leading a selloff in precious-metal producers.

Colruyt SA jumped 8.3%, the most in almost a year, after Belgium’s biggest discount food retailer reported earnings that topped estimates.

Afren Plc, a U.K. oil explorer in Africa and northern Iraq, rallied 7.3% after discovering a “significant” light oil field in Nigeria.

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