News that the economy grew at a better-than-expected rate of 3.8 percent in the fourth quarter sent the major indexes higher Friday.
Gross domestic product, which measures total goods and services production within U.S. borders, grew at a revised 3.8 percent annual rate in the fourth quarter. Wall Street analysts had anticipated a 3.7 percent rise.
The Dow Jones Industrial Average, up 92.81 points, or 0.9 percent, to close at 10,841.60. The Standard & Poor’s 500 gained 11.17, or 0.93 percent, to end the day at 1,211.37. The Nasdaq Composite Index gained 13.70, or 0.7 percent, to end at 2,065.40. It remains down for the year.
Among local companies, shares of VCA Antech Inc. jumped 6 percent to close at $20.39 after the L.A.-based animal health care company announced quarterly earnings. VCA Antech reported fourth-quarter net income of $13.3 million (16 cents per diluted share), compared with $9.4 million (11 cents) for the like period a year earlier. Fourth-quarter revenues rose 33.2 percent to $176.4 million.
Tetra Tech Inc. edged up 3 percent to $16.71 after the Pasadena-based technical services provider announced it had been awarded a three-year contract worth $100 million to support a government plan to install nuclear material detection systems in other countries. The contract was awarded by Ahtna Government Services Corp., a part of the government’s strategy to lessen the risk of nuclear proliferation and terrorism abroad.
On the down side, shares of Tekelec were off 13.5 percent, settling at $17.04, after the Calabasas-based network signaling products producer announced quarterly results after market close on Thursday. Tekelec reported fourth-quarter net income of $13.3 million (18 cents per diluted share), compared with $7.3 million (11 cents) for the like period a year earlier. Revenues rose to $115.9 million, compared to $75 million in the prior year period.
Wilshire Bancorp Inc. dipped 2.5 percent to close at $14.10 after the L.A.-based bank holding company’s board of directors declared its first cash dividend. The dividend of 4 cents per common share will be payable by April 14 to shareholders of record at the close of business on March 31.
