Post-Taper, Markets Have Green Friday


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 ( 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 ( 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

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

This article appears in: Investing , Stocks

Referenced Stocks: BBRY , RHT



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