Market and Wells Fargo 1, Economists 0 (again)

WSJ: “Upbeat remarks from Wells Fargo sparked big gains for bank stocks and spurred broad buying, especially in riskier companies, on Thursday.

At 3:40 p.m., the Dow Jones Industrial Average was up 234 points, topping 8000. The S&P 500-stock index rose 3.5% amid a 14% surge in its financial sector. The Nasdaq Composite Index was up 3.5%. The small-cap Russell 2000 index lept 5%.” 


This story that immediately followed:

Economists in the latest Wall Street Journal forecasting survey expect the recession to end in September, though most say it won’t be until the second half of 2010 that the economy recovers enough to bring down unemployment.

Gross domestic product was predicted to contract in the first and second quarters of this year by 5.0% and 1.8%, respectively, on a seasonally adjusted annualized rate. A return to growth—a modest 0.4%— isn’t expected until the third quarter. In the fourth quarter of 2008, the most recent period for which data are available, the economy contracted 6.3%


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