[R]4:30PM New York, 10:30PM Frankfurt, 2:00AM Mumbai – Second quarter GDP growth was revised lower to 3.8% in the U.S., unemployment declined, and new home sales fell. Brazil and several Asian markets closed at record highs. European markets paced higher as well.[/R]

Dow Jones Industrial Average increased 34.79 or 0.25% to 13,912.94, Nasdaq gained 10.56 or 0.39% to 2,709.59, and S&P 500 added 5.96 or 0.39% to 1,531.38. In Toronto TSX Composite gained 0.68% or 94.76 to close at 14,129.73.

In Brazil, iBovespa Index closed 1.40% higher or 823.32 to a record close of 59,681.10 and in Mexico Bolsa index fell 0.09% or 26.23 to close at 30,268.54.

In London FTSE 100 Index gained 53.40 or 0.83% to 6,486.40, in Paris CAC 40 index added 0.75% or 42.60 to close at 5,733.37, and in Frankfurt DAX index increased 0.64% or 49.64 to close at 7,853.15. In Zurich trading SMI added 0.30% or 26.24 to close at 8,885.95.

In Tokyo stock market Nikkei 225 index jumped 2.41% or 396.48 to close at 16,832.22, in Hong Kong Hang Seng index closed up 2.40% or 634.86 to 27,065.15, in Australia ASX 200 closed up 0.87% or 56.70 to a record close of 6,538.10, and in India Sensex closed up 229.20 or 1.35% to a record close of 17,150.56.

Bond Yields declined on 10-year U.S. bonds to 4.59% and 30-year bond declined to close at 4.85%.

Crude oil gained $2.79 to close at $83.09 per barrel for a front month contract, up 35% for the year so far, natural gas lost 12 cents to $6.91 per mBtu, and gasoline futures increased 6.3 cents to close at 209.10 cents per gallon.

Gold increased $4.40 in New York trading to close at $739.90 per ounce, silver closed up 7 10 cents to $13.645 per ounce, and copper for front month delivery in London lost $50.00 to $7,986.00 per pound.

Dollar edged lower against euro to $1.4150 from $1.4125 and higher to 115.63 yen from 115.55 yen.

Of the 30 stocks in Dow Jones Industrial Average 12 closed lower, 18 closed higher, and none was unchanged. Alcoa led the gainers with a rises of 1.3% or 50 cents to $38.97 followed by increases of 1% in Boeing, 0.9% in 3M, and 0.8% in Altria. General Motors led the decliners with a fall of 3.03% or $1.14 to $36.50 followed by losses in Disney of 0.9% to $34.22, in Hone Depot of 0.8%, and in Intel of 0.7%.

Of the stocks in S&P 500 325 stocks closed higher, 170 fell, and 5 closed unchanged. Seventeen stocks in the index declined more than 3%. SLM Corp led the gainers in the index with a rise of 9% to $49.12 followed by gains in Moody’s of 6.3%, in Micron of 5.7%, in Vulcan Materials of 5%, and in McGraw Hill of 4.8%.

Tesoro Corp led the decliners with a loss of 5.1% or $2.56 to $47.14 followed by declines in Akamai of 5%, in Embarq of 4.5%, in Sunoco of 4.1%, and in Paychex of 3.6%.

In New York ahead of trading reports on new home sales, second quarter GDP, and initial claims of unemployment lifted the averages. The three popular averages were higher for the most of the day. Nasdaq and S&P 500 jumped up 0.4% at the close. The second quarter GDP growth rate was lowered to 3.8% from 4% and unemployment claims fell 15,000 at the end of last week to 298,000. The most watched data on new home sales in August fell 8.3% to annual rate of 795,000, sharpest decline in seven years. The new home sales are expected to fall further as tighter credit standards make it difficult for people to borrow and unsold inventory of homes piles.

Three popular averages traded higher at the opening in New York on lower than expected unemployment report. Market ignored the new home sales and lowered GDP estimate for the second quarter. Market traded higher till the mid-day as energy prices climbed and mining stocks remained firm. The talk of iron ore price revision for the shipment in the next year, lifted metal stocks but metal prices declined in the afternoon trading. Fund managers ahead of the quarter carried out portfolio rebalancing. European markets closed higher led by mining and financial stocks. British Air placed an order for 36 planes and Northern Rock is in discussion with J C Flowers and others for asset sale.

In the late afternoon market focused on housing sector stocks and lifted most builders and companies related to housing infrastructure. Rating agencies Moody’s and McGraw Hill jumped lifted by speculation that after yesterday’s Senate hearing the companies may be spared from severe penalties. Mining stocks closed sharply higher. Energy stocks rallied on a more than 3% rise in oil lifting stocks of Exxon Mobil, Chevron, and ConocoPhillips.

Wyeth and ConAgra, and Lockheed jumped after these companies planned to increase dividend or increased share buyback.

In the overnight trading in Asia, Japan led the region with a sharp rise in financial and energy stocks. Banks and realty stocks led the gainers. Hong Kong, India, Singapore, and Australia closed at record highs. In Australia mining companies led the rise. In Hong Kong index closed above 27,000 for the first time on strength in telecom stocks. China Mobile (CHL: chart) surged 6% and China Netcom added 7%. In Korea shipping companies closed higher. In India broad strength in the market kept the index at another high.

In Latin Markets trading Brazil led the gainers with a rise of 2.2% to a record close followed by increase of 1.13% in Chile, and 0.70% in Argentina and Mexico. Of the 63 stocks in iBovespa index 51 gained, 12 lost, and none closed unchanged. Brasil Telecom led the decliners with a loss of 2.6% followed by 2.1% decline in Embraer. Cyrela led the gainers with a rise of 9% followed by gains of 4% in Bradesco and Lojas America.

[R]3:00PM New York, 8:00PM London – UK stocks gained 0.8% on financial stocks. British Air split an order for planes between Airbus and Boeing.[/R]

UK shares rallied for the second day spurred by the gains in financial stocks. British Airways shares rose on order to place an order of 4 billion pounds.

In London trading FTSE 100 surged 0.83% or 53.4 to 6,486.40 spurred by gains recorded by financial stocks. Of the FTSE 100, 73 stocks gained, 29 dropped. Alliance Leicester led the gainers in the index with a rise of 8.5% and Compass Group led the decliners with a fall of 3%.