US open: Markets rebound after worst day since July

Having experienced their worst single day performance since July on Thursday, markets were on the rebound in the final session of the week as data showed the fastest economic growth for three years and corporate results exceeded forecasts.

According to data released by the Commerce Department, the US economy grew at a revised 4.6% annual pace in the second quarter, equalling its best performance since the recession ended in mid-2009, largely because of higher exports and business investment.

“A further rise in retail sales and upbeat consumer confidence data also indicate that the economy maintained strong momentum in the third quarter,” said Markit chief economist Chris Williamson.

“Although official factory output data have been somewhat mixed and non-farm payroll growth slowed to an eight-month low, the overall picture, based on a model of all the available official and survey data, is of an economy growing at an annualised rate of around 3% in the third quarter.”

In corporate news, Apple rose 1% before the bell, having dropped almost 4% on Thursday amid claims that its new iPhone 6 Plus is prone to bend.

Nike shares jumped over 8% in pre-trading market after the athletic apparel posted better-than-expected quarterly earnings later on Thursday, while Micron Technology rose 7.7% after a surge in quarterly sales exceeded expectations.

Janus Capital Group soared after announcing it had hired Bill Gross, co-founder and co-chief investment officer of Pacific Investment Management, while Blackberry shares climbed 5% before the bell after the smartphone maker offset declining sales with narrower-than-expected fiscal second-quarter loss.

Finish Line shares dropped almost 11% after the firm announced its profit fell 1.3% because of rising expenses, while Chiquita Brands International and Fyffes PLC came to an agreement over reassessed terms of an affiliation plan under which Chiquita would have a greater share of the combined company.

The dollar registered gains against the pound, euro and yen West Texas intermediate crude rose 0.23% and was trading at $92.73 a barre, while gold lost almost $3 an ounce.