Stocks rally again
Wall Street extends the advance as investors welcome Best Buy earnings, look to Washington.
NEW YORK (CNNMoney.com) -- Wall Street moved higher Thursday morning, as investors welcomed better-than-expected earnings from Best Buy and looked to Washington, where Treasury Secretary Tim Geithner was speaking on regulatory reform.
The Dow Jones industrial average (INDU) rose 95 points, or 1.2% in the early going. The S&P 500 (SPX) index rose 11 points, or 1.4%. The Nasdaq composite (COMP) rose 29 points, or 1.9%.
A late-session rally helped U.S. markets finish in positive territory Wednesday. Investors were buoyed by better-than-expected readings on new home sales and durable goods orders, and a jump in financial stocks.
Todd Leone, head trader at Cowen & Co., said that Wednesday's rally was a "major positive" for investor optimism, because it suggested that the massive rally on Monday was more than just a fluke.
Part of Thursday's optimism is fueled by the fact that the S&P has held onto levels at our near the 800 mark, said Leone.
Noting that the first quarter is nearing its end, Leone added, "It would be nice to have a relatively up or a flat quarter."
Economy: The government released its final revision to fourth-quarter gross domestic product, the broadest measure of the nation's economic activity. GDP showed an annualized decline of 6.3%, not as bad as economists had expected, but still a 26-year low.
An annualized decline of 6.6% was expected, according to a consensus of economists surveyed by Briefing.com. The previous fourth-quarter reading had a annual rate decline of 6.2%.
Hamed Khorsand, analyst for BWF Financial, said the GDP reading would have a limited impact on the markets, because most investors are focused on the current quarter, not the last.
The government also unveiled its weekly reading on initial jobless claims. The number of people filing claims for jobless claims in the week ended March 21 totaled 652,000, the government said.
This was slightly worse than expected. A consensus of economist forecasts expected a total of 650,000, according to Briefing.com. This report showed a mild increase from the 646,000 claims filed the prior week.
Geithner testimony: Treasury Secretary Tim Geithner is due to reveal new proposals to control non-bank financial institutions for the purpose of avoiding another financial collapse. Geithner will testify before the House Financial Services Committee.
He is expected to propose the establishment of a regulator to monitor system-wide financial risk as well as push for tougher rules on so-called credit default swaps and other financial instruments that helped throw the markets in turmoil. (Full story)
Autos: The Obama administration's auto task force will likely recommend more aid for struggling U.S. automakers, a senior senator said Wednesday. (Full story)
Companies: Best Buy (BBY, Fortune 500) reported a 23% drop in fiscal fourth-quarter earnings versus a year ago. Stripping out charges, earnings were $1.61 per share, versus forecasts for $1.40 per share. Same-store sales declined 4.9% for the quarter.
Best Buy also forecast full-year earnings in a range of $2.50 to $2.90 per share versus analysts' estimates for a gain of $2.45 per share. Shares rallied 14% in the morning.
"I think that has a positive impact on sentiment in the market, giving the indication that consumers are still willing to go out there and spend," said BWF Financial's Khorsand.
World markets: Markets in Asia rose to their highest level in three months. Stocks in Europe rose higher in morning trading, pulling out of their earlier slump.
Oil and money: The price of oil rose $1.38 cents a barrel to $54.15, recovering some of its losses from the day before. The dollar slipped versus the euro and the British pound, but rose against the yen. 
