Dow went up 185 after GDP data surprised, advancers over decliners about 2-1 & NAZ gained 19.  The MLP index rose 1+ to the 228s & the REIT index slid back to the 367s.  Junk bond funds inched higher & Treasuries saw heavy selling with the yield on the 10 year Treasury jumping 12 basis points to 3.84% (more below).  Oil climbed to go over 70 & gold was off 2 to 1919.

AMJ (Alerian MLP Index tracking fund)

First-quarter economic growth was actually 2%, up from 1.3% first reported in major GDP revision

Federal Reserve says 23 biggest banks weathered Severe Recession Scenario in annual stress test

Treasury yields climbed after the gov said GDP grew more than expected in the first qtr, signaling that the US economy may be farther from a recession than previously feared.  The yield on the 10-year Treasury was last up by over 11 basis points to 3.829%, while the 2-year Treasury jumped 16 basis points to 4.884%.  Yields & prices move in opposite directions & 1 basis point equals 0.01%.  Revised data showed GDP increase at a 2% annualized rate in Q1, up from a previous estimate of 1.3% & the figure was also ahead of the 1.4% forecast.  Weekly jobless claims offered another hint of good news for the state of the economy.  Claims fell to 239K, the lowest level since May, & below the 264K expected.  Elsewhere, investors weighed the outlook for interest rates after Fed Chair Powell said yesterday that policymakers are expecting further restriction.  His recent remarks suggested that inflation is still running too high & rates needed to go higher in order for it to come back down.  Powell also said that he expects it to take ‘a good while’ for low inflation to return & price increases to revert to the Fed’s 2% target.

Treasury yields jump after major GDP upward revision, strong jobs data

Dow Jones Industrials