Stocks climbed Wednesday as investors shrugged off lackluster economic data to keep the market trading at two-year highs said Abby Schultz and JeeYoon Park of CNBC.
Although still positive, a 2.6 percent growth rate isn’t enough to reduce the unemployment rate, said Keith Springer, president of Springer Financial Advisors in Sacramento.
Moreover, the report also showed personal consumption didn’t gain as much as expected, Springer said. Personal consumption rose a revised 2.4 percent in the third quarter and only 0.5 percent when volatile food and energy prices were not included, an indication that inflation is “virtually nonexistent,” he said.
“The entire recovery hinges on personal consumption, essentially consumer spending,” Springer told CNBC.com.
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