Markets closed up on Wall Street: DJI +0.41% SP500 +0.24% Nasdaq +0.32% Gold -0.61% Oil –0.09%.
Today’s markets caught some vibes from the Arizona Wildcats Men’s Basketball team. The GDP revision was positive, Oil (NYSE:USO) eased a tad, and tech heavyweights popped. Markets opened up, rallied, and finished in the green.
Today’s markets were up because:
1) GDP was better than expected. With all the talk about rising oil (NYSE:USO) prices and Japan (NYSE:EWJ), markets cheered some positive economic data. Q4 2010 Gross Domestic Product was revised up to 3.1 from 2.8. However, that’s still 6% below the long-term 3.3 real GDP rate associated with average economic growth. Either way, GDP is still a very subjective economic datapoint. Here’s 4 Reasons Legendary Investor Jim Rogers Ignores GDP Numbers.
2) Tech picked some winners and losers. Oracle (NASDAQ:ORCL) announced solid earnings sending the stock up 1.5%. Apple (NASDAQ:AAPL) also caught a bid after Research in Motion (NASDAQ:RIMM) announced crappy earnings. And Chinese search giant Baidu.com (NASDAQ:BIDU) broke out to new all-time highs. On the other side of the coin, Research in Motion dropped 11% now that Blackberry looks to be falling far behind the other smartphone and tablet makers. Microsoft (NASDAQ:MSFT) got lumped in with Research in motion. Lastly, Google (NASDAQ:GOOG) struggled. This all begs the question: Should Blackberry Pivot and Go Android?
3) Markets ignored consumer sentiment and hawkish Fed comments. After a few weeks of higher gas prices, the University of Michigan Consumer Sentiment Index finally exhibited fears over rising energy (NYSE:XLE) prices. Also, Philadelphia Federal Reserve President Charles Plosser made remarks about how the Fed should plan to raise rates to 2.5% over a year while reducing their balance sheet $1.45 trillion.
Now that you’re in the know, time to watch the second half of the Sweet 16!