U.S. GDP Revised to 3.1%; Oracle, Accenture Shine

Bikram Pandey
25 Mar, 2011
New York City

U.S. stocks showed modest gains after fourth quarter GDP was revised to 3.1% and consumer sentiment index was lower than expected. Oracle reported sharply higher earnings and Wynn Resorts strikes a deal with online poker site. Accenture reported better than expected outlook.

[R]10:50 AM New York – U.S. stocks showed modest gains after fourth quarter GDP was revised to 3.1% and consumer sentiment index was lower than expected. Oracle reported sharply higher earnings and Wynn Resorts strikes a deal with online poker site. Accenture reported better than expected outlook.[/R]

U.S. stocks traded with modest gains after the fourth quarter GDP was revised to 3.1% and Oracle reported better than expected earnings.

Investors ignored the weaker than expected consumer sentiment index tracked by University of Michigan at 67.50

U.S. Commerce Department lowered its estimate of the fourth quarter to 3.1% form the previous estimate of 3.2% two months ago and ahead of 2.8% estimate in February.

For the year 2010 economy expanded at 2.9% and in the third quarter grew at 2.6%.

European leaders haggle to iron our differences to increase the size of the stability fund at the end of the 2-day summit and Portugal slips into political and economic turmoil.

European leaders are looking to increase the stability fund size to 400 billion euros from the current limit of 250 billion in place after the Greek crisis last summer.

However, Germany requested and received to shrink its contribution only three days after agreeing to a higher contribution.

Markets in Asia generally closed higher. Indexes in Japan and China gained more than 1% as investors focus on domestic economic growth and rising earnings. Bank of China reported 29% increase in earnings and automakers in Japan move closer to resuming some auto production as early as this weekend.

Mining and resource heavy index in Australia surged as the Australian dollar edged higher on the expectations of the rising demand for iron ore and coal.

In addition, BHP Billiton also detailed its $13 billion of the $80 billion investment plan.

The mining giant will spend $6 billion to expand its iron ore mining operation in Western Australia, spend $5.5 billion to increase metallurgical coal operation in Queensland and a coal handling terminal and $400 million resume a coal mine.

Russia left its key lending rate on hold at 8% and BP Plc lost an arbitration ruling against its Russian joint venture partner THK BP. The deal puts the oil giant’s growth plan in question as it looks to expand its operation in Russia with another partner Rosneft.

Stock Movers

Accenture ((ACN)) increased 6% to $55.28 after it lifted its revenues outlook and said fiscal second quarter earnings increased 26% from a year ago.

Darden Restaurants, Inc ((DRI)) decreased 2.4% to $46.87 after it reported 13% increase in fiscal third quarter earnings.

Research in Motion ((RIMM)) dropped 11% to $57.31 after the company guided lower revenuesin the current quarter and the mobile devices maker also permitted the use of Google’s Andriod applications on its PlayBook tablet computers.

Oracle Corporation ((ORCL)) increased 4% to $33.45 after the business software maker reported fiscal third quarter net soared 78%.

The Wet Seal, Inc ((WTSL)) gained 14% to $4.05 after it reported higher than expected adjusted profit in the fiscal fourth quarter.

Wynn Resorts ((WYNN)) added more than 2% $126.81 after the casino operator entered in a strategic relationship with online poker site in the hopes that the U.S. will permit the online gambling soon.