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Stocks hold it together
Market absorbs weaker read on GDP, rise in oil prices, manages to post small gains at open.
October 29, 2004: 9:49 AM EDT

NEW YORK (CNN/Money) - Stocks inched higher early Friday as investors shrugged off a weaker-than-expected read on gross domestic product growth and another uptick in the price of oil.

The Dow Jones industrial average (up 2.51 to 10,004.54, Charts), the Standard & Poor's 500 (up 0.17 to 1,127.61, Charts) index and the Nasdaq composite (up 1.16 to 1,976.90, Charts) all rose a few points in the early going.

GDP grew at a 3.7 percent annual rate in the third quarter, the Commerce Department said, in a report released before the start of trade. That was up from a read of 3.3 percent in the second quarter, but below expectations for 4.3 percent growth.

U.S. light crude oil for December delivery added 23 cents to $51.15 a barrel in electronic trading.

However, investors took these negative developments in stride and showed little reaction, with the mood remaining mostly positive after three up session in a row.

The revised read on consumer sentiment in October from the University of Michigan was higher than expected at 91.7, up from an earlier read of 87.5.

Also due after the start of trading was the Chicago PMI, a look at manufacturing in the midwest region. The index likely fell to 59 in October from 61.3 in September.

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Among early movers, Aon (unchanged at $21.52, Research) tumbled after reporting earnings late Thursday that fell from a year earlier. The No. 2 insurance broker also withdrew its 2005 guidance, citing weakening market conditions and its decision to stop using contingent commissions.

The way the insurance industry uses commissions has come under scrutiny lately from the New York Attorney General's office and elsewhere.

Treasury prices were little change, with the 10-year note yield at 4.05 percent.

In currency trading, the dollar inched lower versus the yen and euro.  Top of page




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