Wall Street Beat: IT earnings boost market confidence

25.03.2011

BlackBerry maker . Its fourth-quarter revenue was $5.6 billion, a year-over-year increase of 36 percent. But the company is being punished for a disappointing forecast. Citing costs associated with its PlayBook tablet, RIM said it expects sales between $5.2 billion and $5.6 billion, while analysts had expected revenue of $5.67 billion. Shares plunged Friday, trading at $56.95 just before the closing bell, down by $7.11.

Good economic news helped boost stocks in all sectors Friday. The U.S. Commerce Department said that gross domestic product rose 3.1 percent in the fourth quarter of 2010, higher than prior estimates. The Labor Department said this week that new claims for unemployment benefits declined to a level not seen since before the recession.

All three major U.S, indexes were headed toward gains of at least 3 percent this week, putting them back into positive territory for the year after a steep decline in the wake of the Japan earthquake. Concerns about Middle East strife, and the threat of higher energy prices, also have had negative effects on markets. But computer stocks on the Nasdaq Friday were set to close up more than 3 percent for the year. If tech bellwethers put out strong earnings over the next few weeks, financial news may continue to trump geopolitical strife on the markets.