Friday Market Rap: MSFT, OMX, GT, YRCW & GE

The morning opened lower as first quarter GDP came in at 1.3% annual rate. GDP numbers are one of the significant indicators to pay attention to. With the housing slowdown, the total economy –everything we make- grew at a 1.3% annual rate. Normally economists like to see that number between 3-4% rate. Since the growth rate is still positive, we are not in a recession, but it is down significantly from 2.2% last quarter and below the 25 year average of 3.1%. They still get to revise the GDP one more time in about a month, so we will see what happens then.

The NYSE had volume of 2.7 billion shares with 1,396 shares advancing while 1,834 declined for a loss of 10.13 points to close at 9,705.36. On the NASDAQ, 2.1 billion shares traded, 1,168 advanced and 1,834 declined for a gain of 2.75 to 2,557.21.

Stocks moving today included: Cummins (NYSE: CMI) jumped $10.15 (12%) to $96.14 on earnings. YRC Worldwide (NASDAQ: YRCW) skidded down $3.97 (-9%) to $41.77 on lower shipping profits. Continental Airlines (NYSE: CAL) lost altitude of $2.53 (-7%) to $36.25 on a downgrade. The Goodyear Tire (NYSE: GT) rose $1.91 (6%) to $34.41 after announcing it will be closing more plants. OfficeMax (NYSE: OMX) fell $2.10 (-4%) to $49.31 on a downgrade.

In options there were 4.1 million puts and 4.8 million calls traded for a put/call open interest ratio of 0.84. General Electric (NYSE: GE) moved volume on the May 37.50 calls (GEES) with over 48,000 contracts and also had action of the June 37.50 calls (GEFS) with over 32,000 options. Microsoft (NASDAQ: MSFT) rose 3.5% on higher software sales and saw volume on the May 30 calls (MSQEK) with 43,000 contracts and the January 30 calls (WMFAF) with 33,000 contracts. Tyco International (NYSE: TYC) traded July 27.50 calls (TYCGY) over 24,000 times.

Kevin Kersten is an Options Analyst with InvestorsObserver.com. Do you have any deadwood in your portfolio? Check out the 18 Warning Signs That Tell You To Dump A Stock.

Disclosure note: Mr. Kersten owns and or controls a diversified portfolios of long and short positions that may include holdings in companies he writes about.