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US stocks close higher after GDP growth | |
(about 7 hours later) | |
US stocks climbed on Wednesday, after the Commerce Department said the economy grew faster than expected in the second quarter. | |
President Donald Trump also made a speech calling on Congress to act to advance tax reform, a proposal favoured by many businesses. | |
The Dow Jones, a basket of 30 major US companies, climbed 0.12% to 21,892.43. | |
The wider S&P 500 index advanced 0.46% to 2,457.59 and the tech-heavy Nasdaq jumped 1.05% to 6,368.31. | |
The Commerce Department said the US economy grew at a 3% annual rate over the three months to the end of June, up from an earlier 2.6% estimate. | |
The revision means that growth for the quarter was at the fastest rate since the first quarter of 2015. | |
President Donald Trump said tax reform should propel US growth even higher, though he released few specifics. | |
Technology companies led the stock gains, with Cisco and Microsoft seeing some of the biggest increases on the Dow. | |
H&R Block, one of the biggest US tax preparation companies, saw its stock fall more than 8%, a day after it released quarterly earnings. | |
The firm reported a net loss of more than $130m for the three months to the end of July and told analysts it expects more tax filers to opt for "DIY" or do it yourself options next year. | |
But the firm's chief executive said he isn't worried that tax reform will upend the industry, noting that a new plan remains unclear. | |
"The only thing that's emerging is that there's definitely a lack of consensus around any single proposal," said incoming chief executive Tom Gerke, | |
He added that H&R Block as a business would benefit from lower corporate rates, but he doesn't think families will feel comfortable without assistance. | |
"It could be simpler, but there's no scenario where it would be simple, the US tax code," he said. |
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