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.