4Q Output Jumps to Soothe Some of the Bulls' Recent Lumps

The bulls welcomed today's larger-than-expected 4Q GDP report as stocks are moving solidly higher, as some of the economic concerns that have surfaced recently, which led yesterday's solid decline and last week's steep losses, are being soothed in late-morning action. The earnings calendar is in focus as Dow member Microsoft and Amazon.com both exceeded earnings forecasts. However, fellow Dow member Chevron posted a mixed profit report, and traders are reacting negatively to better-than-expected earnings from Honeywell International and Mattel Inc. Treasuries remain lower after extending losses following the GDP report and as the 4Q Employment Cost Index rose more than expected. Elsewhere on the economic front, Midwest manufacturing unexpectedly improved and consumer sentiment was revised higher than economists expected. Overseas, Asian markets followed yesterday's decline in the US, while Europe is on the rebound.

4Q GDP Causes Bears to Flee

The bulls received some needed inspiration to exit the stalls this morning following yesterday's solid decline, as global economic uncertainty dampened sentiment, from a larger-than-expected increase in the first report on US 4Q GDP, which showed the broadest measure of economic output jumped by a 5.7% annualized rate. Stocks are higher in morning action amid the upbeat GDP number and on some favorable earnings reports out of the tech sector, as Dow member Microsoft and Amazon.com both reported earnings that exceeded expectations. However, fellow Dow member Chevron posted a mixed profit report. Treasuries are lower after extending losses following the GDP report and as the 4Q Employment Cost Index rose more than expected. Later today, the economic calendar will yield reports on Midwest manufacturing and consumer sentiment. Overseas, Asian markets followed yesterday's decline in the US, while Europe is on the rebound.

Financials and Tech Drag Stocks Below the Flatline

Financials have turned below the flatline, relinquishing early enthusiasm that came on the heels of the Federal Reserve maintaining its monetary policy stance and as President Barack Obama pared back his tone toward financial regulation and seemed to be focusing on job creation. Additional pressure on financials came amid cautious comments from Standard & Poor's toward the UK banking industry. Technology shares are also under pressure to help pull the equity markets below the unchanged mark, led by a sharp drop in shares of Qualcomm after it issued 2Q guidance that missed the Street's forecasts. The economic front provided some uneasiness regarding the economic recovery, with headline durable goods orders rising by a smaller amount than expected and weekly initial jobless claims falling by a fewer amount than was anticipated. The soured sentiment is overshadowing upbeat earnings reports, as Ford Motor Co. and Dow members 3M Co. and Procter & Gamble posted better-than-expected results, while fellow member of the blue chip index AT&T matched expectations. Overseas, Asian markets finished higher, while European shares have given up early gains amid the worries surrounding the UK.

Moving Higher Despite Disappointing Headline Durables

After rebounding somewhat yesterday as the Federal Reserve maintained its monetary policy stance, stocks are moving higher on eased concerns in the financial sector as President Barack Obama pared back his tone toward financial regulation and seemed to be focusing on job creation. The relatively upbeat sentiment is overshadowing a disappointing reading of headline durable goods orders and a smaller-than-expected drop in weekly initial jobless claims, which has Treasuries mixed. Also, some upbeat earnings reports from Ford Motor, and Dow member 3M CO. are helping to boost the equity markets in morning action. However, fellow Dow member Procter & Gamble missed the Street's profit estimates, while AT&T matched expectations. Overseas, markets are higher.

New Home Sales Drag Stocks Back in the Red Ahead of the Fed

Economic uneasiness continues to weigh on the markets and stocks are modestly lower on the heels of last week's solid decline and yesterday's disappointing late-day slide, which wiped away gains as an unexpected drop in new home sales is exacerbating sentiment. Traders are also treading cautiously ahead of the afternoon release of the Federal Reserve's interest rate announcement and monetary policy statement. The earnings front is providing some news for traders to chew on as they wait for the Fed's announcement, with Dow members Boeing and United Technologies both topping the Street's estimates, while fellow Dow component Caterpillar missed on the top line and provided cautious guidance, which are overshadowing its better-than-expected bottomline. Outside of the Dow, Yahoo posted profits that exceeded analysts' forecasts. Treasuries have moved higher in late-morning action ahead the Fed's report and after the disappointing new home sales report, which is teaming up with a drop in mortgage applications to add to the economic uneasiness and the unfavorable backdrop for the housing sector. Overseas, markets are under pressure amid lingering concerns about China's efforts to control asset bubbles.

Ahead of the Fed, Bulls Trying to Escape the Red

After a late-day slide yesterday, which erased an advance and took the major equity markets below the flatline, stocks are nearly unchanged in cautious early action ahead the afternoon release of the Federal Reserve's interest rate announcement and monetary policy statement. The earnings front is providing some news for traders to chew on as they wait for the Fed's announcement, with Dow members Boeing and United Technologies both topping the Street's estimates, while fellow Dow component Caterpillar missed on the top line, which is overshadowing its better-than-expected bottomline. Outside of the Dow, Yahoo posted profits that exceeded analysts' forecasts. Treasuries are flat in morning action ahead the Fed's report and after mortgage applications fell. New home sales will be released just after the opening bell. Overseas, markets are under pressure amid lingering concerns about China's efforts to control asset bubbles.

Street Grapples With Earnings and Lingering Global Concerns

The bulls showed some resiliency yesterday, rebounding somewhat from last week's steep decline, and stocks are nearly unchanged in late-morning action as traders are grappling with some generally better-than-expected earnings reports in the US, while digesting some uneasiness overseas. Asian shares moved lower and dampened early trading on Wall Street on lingering concerns about China's efforts to rein in liquidity, while a downgraded outlook from Standard & Poor's on Japan's sovereign credit rating, which followed the closing bell in Asia, added to the morning's apprehension. Meanwhile, stocks have come off the worst levels of the day as traders are digesting a plethora of major earnings reports, headlined by generally better-than-expected profit releases from several Dow members, along with bottomline announcements from Apple and Texas Instruments, which both exceeded the Street's estimates, while US Steel reported a larger-than-expected loss. Some on the Street are treading with some caution ahead of the Federal Reserve's monetary policy announcement tomorrow. Treasuries have pared an advance that came
from the aforementioned early economic uneasiness and following a report that showed US home prices fell more than expected, and after consumer confidence improved for a third-straight month. Overseas, European shares have overcome early weakness on the heels of a disappointing UK 4Q GDP report following a better-than-expected reading of business confidence in Germany-Europe's largest economy.

Global Economic Concerns Weigh on Sentiment

After slightly rebounding yesterday from last week's solid declines, stocks are back under some pressure as concerns about the impact of tighter lending in China on the global economic recovery are resurfacing to pressure sentiment in early trading. Additionally, uneasiness regarding Japan's sovereign credit quality on the heels of an outlook downgrade by Standard & Poor's and a smaller-than-expected increase in 4Q UK GDP are adding to the global economic concerns. Meanwhile, stocks have come off the worst levels of the day as traders are trying to digest a plethora of major earnings reports, headlined by mixed profit releases from several Dow members, along with bottomline announcements from Apple and Texas Instruments, which both exceeded the Street's estimates. Some on the Street are treading with some caution ahead of the Federal Reserve's monetary policy announcement tomorrow and ahead of a key report on consumer confidence. Treasuries are gaining ground in morning action amid the aforementioned economic uneasiness, and following a report that showed US home prices fell more than expected. Overseas,
Asian markets came under solid pressure, while European shares are also in red despite a better-than-expected reading of business confidence in Germany-Europe's largest economy.