Today's release of fourth-quarter gross domestic product, or GDP, put additional pressure on Treasuries. Although the final revision edged up to an expected 1.7 percent, core consumer inflation - one of the Fed's favorite inflation indicators - hit 2.4 percent, spurring another round of selling. Not only was this up from the previous 2.1 percent reading, but it is also well above the 2-percent “comfort zone” ceiling associated with the Fed. Within the GDP, it was also reported that corporate profits hit a four-year high in the quarter, climbing 13.8 percent to $185.8 billion.

Adding to Treasury woes was a drop in first-time claims, as traders believe a strong job market could foster inflation. Although the numbers were somewhat skewed due to the introduction of seasonal factors, unemployment claims, for the week ended March 25, fell for the second straight week after three weeks of increases. Claims slid by 10,000 to 302,000, while the more closely watched four-week average, which smoothes volatility, dipped to 310,750.

Interest rates, oil weigh on the Dow, while Nasdaq flourishes

The steep rise in Treasury yields weighed on the Dow Jones industrials, with the blue chips selling off due to concerns about inflation and high oil prices, which rose again today. Oil climbed by 70 cents a barrel to close at $67.15. Twenty-three of the 30 Dow components ended in negative territory, led by GM, which shed almost 5 percent due to concerns about restating financials for GMAC and the possible sale of Isuzu Motors. Other significant losers included Caterpillar, which lost 1.7 percent, and 3M and Verizon, which each slipped 1.5 percent. Home Depot and Altria lost 1.3 percent each.

GE was the only component with a substantial gain, with its shares rising 2.12 percent. This was due to Morgan Stanley's suggestion that GE shares could double within the next three years. Microsoft added 0.8 percent, but other gains were modest at best.

Gains on the Nasdaq weren't spectacular, but the tech-heavy index managed to hit a new five-year high. Nokia, the No. 1 cell phone maker, rose 4.3 percent after raising its sales forecast. This not only boosted those in the sector, but also those who supply them. Ericsson and Motorola posted gains, and so did Cisco Systems, which added 1.9 percent.

Sun Microsystems, which has been on a tear of late, fell 1.9 percent, while Google lost 5.3 percent today on news that it has filed to periodically sell 5.3 million shares of its stock.

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