US STOCKS-Wall St rises for second day as data eases Fed worry

Wed Jun 26, 2013 12:30pm EDT
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* Below-forecast GDP read eases stimulus concerns

* Mining stocks under pressure as gold tumbles

* Adobe and Microsoft rise on analyst upgrades

* Indexes up: Dow 0.5 pct, S&P 0.6 pct, Nasdaq 0.6 pct

By Ryan Vlastelica

NEW YORK, June 26 (Reuters) - U.S. stocks advanced for a second straight day on Wednesday as a broad measure of economic growth was revised down, easing investors' concerns that the Federal Reserve would begin to withdraw its stimulus early.

The economy grew 1.8 percent in the first quarter, according to the Commerce Department's final estimate of gross domestic product. That was well below expectations for 2.4 percent growth.

While the data is backward-looking and includes the start of cutbacks in federal spending, analysts said it could influence the Fed as it considers whether the economy is strong enough for it to begin scaling back its bond-buying.

The effect of the GDP report "is that despite all the rhetoric and fear about tapering, this will keep the Fed firmly planted in stimulus, which is a positive for the market," said Michael Mullaney, chief investment officer at Fiduciary Trust Co in Boston.   Continued...