US open: Markets edge forward amid better-than-expected GDP growth

US stocks moved slightly forward on Tuesday, as the country’s economy grew more than forecast in the third quarter.

Just before 10:00 in New York the Dow Jones Industrial Average was 0.01% down, while the S&P 500 rose 0.20% and the Nasdaq was 0.40% up.

According to figures released by the Commerce Department gross domestic product (GDP) rose by an annualised 3.9% in the three months to the end of September, revised up from the initial estimate of 3.5%.

GDP has now grown by an average of 4.2% in the last six months, the strongest two-quarter stretch since the middle of 2003.

Meanwhile, the Organisation for Economic Co-operation and Development (OECD) said that the global economy will gradually improve over the next two years. However, the OECD estimated that Japan will grow less than previously expected, while the Eurozone will struggle with stagnation and an increased deflation risk.

“Although surveys suggest consumer confidence has risen to its highest since 2007, the mood in the corporate sector has started to sour,” said Chris Williamson, chief economist at Markit.

“Business expectations about the year ahead are running at the lowest seen since 2009. Hiring and investment intentions have also slipped to post-recession lows as US companies worry in particular about the global economic climate.

“With central banks in the Eurozone and Japan taking further action to boost economic growth, worries about the global economic outlook are perhaps overly gloomy. “

Tiffany & Co declined after missing third-quarter profit estimates, while Post Holdings fell as the company forecast a $15m-$20m decline in first-quarter RTE cereal sales from a year earlier.

Signet Jewelers rose after reporting third-quarter earnings that beat analysts’ estimates, while Nuance Communications jumped as the maker of speech-recognition software reported fourth-quarter earnings that charged ahead of market forecasts.

The dollar fell against the pound, the euro and the yen, while gold futures advanced slightly to $1.196.90.

The yield on the 10-year US Treasury note fell one basis point to 2.30%, while the yield 30-year note fell two basis points to 3.00% and the yield on the five-year Treasuries declined one basis point to 1.59%.

The prices of Brent crude and West Texas Intermediate crude both rose 0.8%, with the former trading at just over $80 a barrel and the latter trading at just under $76.5 a barrel.