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.