Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Post-Taper, Markets Have Green Friday


Today's financial recap and tomorrow's financial outlook.

The S&P 500 (INDEXSP:.INX) hit a new all-time record closing high of 1818.32 today on the back of impressive economic numbers.

The final estimate of third-quarter GDP was 4.1%, significantly higher than the 3.6% consensus forecast. Personal consumption also impressed, rising 2.0%, easily ahead of the 1.4% consensus. The GDP deflator was in-line at 2.0%.

The news was good enough to send the bears running for cover, with all S&P sectors comfortably in the green; however, emerging markets stocks were down, taking their cue from weakness in Chinese names.

In a reversal from the past two days, the small-cap Russell 2000 (INDEXRUSSELL:RUT) showed massive outperformance, up 1.9%, good enough to make its own all-time high. We also saw a new record for the Dow Jones Industrial Average (INDEXDJX:.DJI), and a new post-bubble record for the Nasdaq Composite (INDEXNASDAQ:.IXIC).

Software maker Red Hat (NYSE:RHT) shined on Friday with a 14.5% rally, following a very impressive third-quarter earnings report Thursday afternoon. Raymond James and UBS both upgraded the stock this morning.

Shares of BlackBerry (NASDAQ:BBRY) rose 15.5%, despite reporting a third-quarter loss and revenues that were well below analysts' expectations. In conjunction with its earnings report, the company announced a five-year partnership with electronics manufacturer Foxxconn to develop new smartphone products, which is a signal that BlackBerry will be less dependent on manufacturing low-margin hardware. New CEO John Chen said the deal would help the company turn cash flow positive.

Nike (NKE:NYSE) had a rough day, however, falling 1.2% despite a solid second-quarter earnings report. Investors were underwhelmed with the company's forward outlook, which is being dragged down by expense pressures. Heading into the quarter, the stock was up 52% year-to-date, so expectations may have gotten a bit ahead of themselves.

Over in fixed income, the 10-year US Treasury yield is back down to 2.89% after an early morning rally that nearly hit the 3% mark.

Tomorrow's Financial Outlook

Given that we're heading into a holiday week, it's likely to be a slow day in terms of news, and volumes should be low.

However, there is some economic data on the calendar. At 8:30 a.m. EST, we will receive November personal income, personal spending, and PCE prices. And at 9:55 a.m., the December University of Michigan consumer sentiment survey will be released.

There are no major earnings reports due.

Twitter: @Minyanville

Follow the markets all day every day with a FREE 14 day trial to Buzz & Banter. Over 30 professional traders share their ideas in real-time. Learn more.
< Previous
  • 1
Next >
No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

Featured Videos