Business

US shares rise as growth is revised up

NYSE traders Image copyright Reuters

(Close): US stocks received a boost on Thursday following an upward revision to the growth rate at the end of 2016.

The economy grew at an annualised pace of 2.1% in the fourth quarter of the year, the Commerce Department said, up from an earlier estimate of 1.9%.

At the close the Dow Jones was up 69.17 points, or 0.33%, at 20,728.49.

The S&P 500 edged up 6.93 points, or 0.29%, to 2,368.06 while the Nasdaq added 16.80 points, or 0.28%, to 5,914.34.

The biggest faller on the Nasdaq was sportswear maker Lululemon Athletica, which closed down by 23.44% after it warned that sales were likely to fall.

The company said it expected same-store sales to fall in the first quarter of the year, the first decline since 2009.

Shares in ConocoPhillips were the best performers on the S&P 500. They finished the day 8.8% higher after the energy company announced it was selling oil sands and western Canadian natural gas assets to Cenovus Energy for 17.7 billion Canadian dollars ($13.3bn; £10.6bn).

ConocoPhillips is not the first oil major to scale back its operations in the region, with both Royal Dutch Shell and Marathon Oil also having sold oil sands assets.

The high costs of extraction have made it hard for companies to make profits with oil prices remaining low.

Other energy shares also rose, helped by another increase in the price of oil

Brent Crude was up by 1% at $52.94 and West Texas Intermediate was up 1.7% at $50.37.