Wall Street ends higher; Dow up 189 points

Traders shrugged off disappointing GDP data that showed the economy is shrinking in late trade. It was yet again a session of wild swings with last minute gains. The Dow closed with a gain of 200 points up 2% while the Nadaq and the broader S&P 500 put on about 2.5% at close.

US 3Q GDP shrank 0.3% Vs growth of 2.8% in 2Q; biggest decline since 2001. US 3Q GDP was expected to drop by 0.5%. US Consumer spending dropped 3.1% against expectation of 2.4% drop. US Consumer spending drops for the 1st time since 1991 and witness biggest since 1980. Initial jobless claims for the week ending Oct. 25 were unchanged at 479,000 against expectation of 475,000.

The Dow gained 189.73 points, or 2.11%, to 9,180.69. The S&P 500 index advanced 24 points, or 2.58%, to 954.09, while the Nasdaq composite index surged 41.31 points, or 2.49%, to 1,698.52.