(RTTNews) - Stocks continue to show notable strength in late morning trading on Thursday, boosted by an upbeat government report regarding the U.S. economy as well as a drop in oil prices. Before the markets opened, the Commerce Department released its preliminary second quarter GDP report which showed that the economy grew at a much faster than expected pace.

Boosted by the drop in oil prices, airline stocks are turning in some of the best performances. The Amex Airline Index is climbing 5.9 percent. Banking, housing and networking stocks are posting solid gains as well.

Meanwhile, the drop in oil prices is pressuring oil and oil service stocks. The Amex Oil Index is down 1.7 percent, compared to a 2 percent drop by the Philadelphia Oil Service Index. Gold and health insurance stocks are also seeing modest declines.

In recent trading, the major averages have moved well off of their intraday highs, although they remain firmly in positive territory. The Dow is currently up 142.24 at 11,644.75, the Nasdaq is up 18.81 at 2,401.27 and the S&P 500 is up 9.41 at 1,291.07.

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Posted in Categories: Economy, Releases, USA.

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