Wall Street jumps as GDP growth spurs optimism

NEW YORK (Reuters) - U.S. stocks logged their best one-day percentage gain in three months on Thursday as investors saw data showing the U.S. economy returned to growth in the third quarter as brightening the outlook for profits. The government's first estimate of U.S. gross domestic product showed the economy expanded at an annual rate of 3.5 percent in the third quarter, suggesting it was emerging from the worst recession in 70 years. The quarter of growth was the first after more than a year of contraction in GDP. For details, see [ID:nN29354547]

U.S. economy stabilized but credit risk remains: Geithner

CHICAGO (Reuters) - The U.S. economy's return to growth during the third quarter shows stability has been regained but recovery is fragile and needs nurturing, Treasury Secretary Timothy Geithner said on Thursday. The government estimated that gross domestic product grew at an annual rate of 3.5 percent from July through September. Still, Geithner said the government must be ready to reinforce growth if needed to avoid risks of a credit crunch.

Economy returns to growth after deep slump

WASHINGTON (Reuters) - The U.S. economy grew in the third quarter for the first time in more than a year as government stimulus helped lift consumer spending and home building, fueling an unexpectedly strong advance. Signaling the end of the worst recession in 70 years, the Commerce Department on Thursday said the economy expanded at an annual rate of 3.5 percent in the July-September period, snapping four down quarters with its fastest growth pace since the third quarter of 2007.

Samsung Q3 profit trebles on chips, LCDs

SEOUL (Reuters) - Samsung Electronics <005930.KS>, the world's top maker of memory chips and LCD screens, reported on Friday its best ever quarterly net profit on a resurgent memory sector and forecast a strong 2010. Samsung, which forecast strong quarterly earnings earlier this month, made a spectacular turnaround this year, riding a sector recovery and wrestling market share from global rivals, sending its stock to a record high last month.

CIT seen filing for bankruptcy in coming days

NEW YORK (Reuters) - CIT Group <CIT.N> is likely to file for bankruptcy in the coming days, analysts and experts said. The lender to small and medium-sized businesses is trying to restructure its debt, and is offering investors two options.

Fed should lose AIG-style bailout powers: Geithner

WASHINGTON (Reuters) - The Federal Reserve should lose its authority to bail out big, failing financial firms like AIG and Bear Stearns under proposed reforms aimed at limiting the collateral damage from such failures, U.S. Treasury Secretary Timothy Geithner said on Thursday. Geithner, in testimony to the U.S. House of Representatives Financial Services Committee, said the Fed should keep its ability to act as an emergency lender of last resort, but only to solvent firms in times of severe stress in financial markets -- with Treasury consent. Continued...