Closing Update: Stocks End Moderately Higher; Better-Than-Expected GDP

Stocks finished moderately higher for a second day, shaking off earlier declines after tech bellwethers Apple and Amazon.com late yesterday reported earnings falling short of expectations.

Preliminary Q3 gross domestic production figures released this morning topped expectations, helping limit declines. A final reading on October consumer sentiment also out today kept its perch near a five-year high, apparently bolstering trader attitudes as well. Most industry sectors pared earlier losses in late trade to finish with small gains. Financial stocks also rallied somewhat but still ended the day lower.

Markets opened nearly even this morning, balanced between downward pressure spurred by the Apple (AAPL) and Amazon.com (AMZN) earnings misses and modest optimism following the better-than-expected GDP numbers.

AMZN reported its first quarterly net loss since 2003 with $0.60 a share loss, including $0.37 in items. Analysts were expecting a $0.06 net loss. Sales also miss by $100 million. Guides Q4 revenue at least $40 million under estimates.

AAPL reported Q4 earnings of $8.67 a share, trailing the analyst consensus by $0.08. Revenue for the quarter rises 27.3% to $36 billion, exceeding expectations. It also provided downside Q2 guidance.

The U.S. economy expanded 2.0% in Q3, topping expectations for 1.8% growth, aided by a pickup in consumer spending, a rebound in government outlays and gains in residential construction. Separately, the University of Michigan Consumer Sentiment reading weighed in with a final 82.6 reading this month, its highest level since September 2007. Economists had projected an 83 reading following a preliminary October reading of 83.1, according to the median forecast of 60 economists surveyed by Bloomberg News.

Also bolstering the late rally were gains for crude oil, with the December futures contract settled 23 cents higher at $86.28 a barrel. November natural gas ended 3.4 cents higher at $3.40 per 1 million BTU. December gold fell $1.50 to $1711.60 per ounce while December silver fell 5 cents to $32.03 per ounce. December copper was flat at $3.55 a pound.

Here's where the U.S. markets stood at end-of-day:

Dow Jones Industrial Average up 3.53 (+0.03%) to 13,107.21

S&P 500 down 1.03 (-0.07%) to 1,411.94

Nasdaq Composite Index up 1.83 (+0.06%) to 2,987.95

GLOBAL SENTIMENT:

Hang Seng Index down 1.21%

Shanghai China Composite Index down 01.69%

FTSE 100 Index down 0.05%

UPSIDE MOVERS:

(+) STSI, Shares rise after company corrects study data released earlier in the week.

(+) ACI, Q3 earnings trump expectations.

(+) N, Shares touch a new year high after quarterly earnings come in better than expected.

DOWNSIDE MOVERS:

(-) CBRX, FDA rejects Watson Pharmaceuticals' (WPI) Formal Dispute Resolution Request related to its New Drug Application for Prochieve for the prevention of preterm birth in women with a short cervical length.

(-) ESIO, Company reported mixed Q2 results but guides Q3 sharply lower. Needham cuts price target.

(-) PDII, William Blair downgradea to Market Perform from Outperform.