Shiny, happy Wall Street

By Paul R. La Monica, CNNMoney
2009-4-29 13:00:53

NEW YORK (CNNMoney.com) -- It would have been hard to imagine a few months ago that the market would cheer a report showing the economy declined at a more than 6% annual pace in the first quarter.

But that's exactly what happened Wednesday on the heels of the first quarter gross domestic product report. All three major market barometers shot up about 2% in early afternoon trading. Welcome to the shinier, happier Wall Street.

The S&P 500 (SPX) is inching back close to 900, a level it hasn't hit since before Inauguration Day. The index has surged nearly 30% from its lows in early March and is now down less than 4% for the year.

So is this recent market rally really a legitimate sign that the worst is over?

Investors' giddy reaction to a report that didn't exactly do a great job of justifying recent hopes that the recession is getting less severe - GDP fell at an annual pace of 6.1% in the first quarter, compared with a 6.3% fourth-quarter drop - is yet another example of how quickly sentiment has shifted in the market.

"There have been a decent dose of economic indicators showing signs of stability lately. This rally looks healthier than other bear market rallies preceding this," said Liz Ann Sonders, chief investment strategist with Charles Schwab & Co.

It wasn't that long ago that every piece of economic data, every earnings report and every new initiative by the Treasury Department or Federal Reserve was viewed through a glass darkly. It was verboten to suggest that the economy might actually be close to stabilizing. We were heading for Great Depression 2.0!

	Investment Basic Investment Overview Investment Approache Fundamentals Data Investment Stories www.fxj108.com	Shiny, happy Wall Street By Paul R. La Monica, CNNMoney 2009-4-29 13:00:53 NEW YORK (CNNMoney.com) -- It would have been hard to imagine a few months ago that the market would cheer a report showing the economy declined at a more than 6% annual pace in the first quarter. But that's exactly what happened Wednesday on the heels of the first quarter gross domestic product report. All three major market barometers shot up about 2% in early afternoon trading. Welcome to the shinier, happier Wall Street. The S&P 500 (SPX) is inching back close to 900, a level it hasn't hit since before Inauguration Day. The index has surged nearly 30% from its lows in early March and is now down less than 4% for the year. So is this recent market rally really a legitimate sign that the worst is over? Investors' giddy reaction to a report that didn't exactly do a great job of justifying recent hopes that the recession is getting less severe - GDP fell at an annual pace of 6.1% in the first quarter, compared with a 6.3% fourth-quarter drop - is yet another example of how quickly sentiment has shifted in the market. "There have been a decent dose of economic indicators showing signs of stability lately. This rally looks healthier than other bear market rallies preceding this," said Liz Ann Sonders, chief investment strategist with Charles Schwab & Co. It wasn't that long ago that every piece of economic data, every earnings report and every new initiative by the Treasury Department or Federal Reserve was viewed through a glass darkly. It was verboten to suggest that the economy might actually be close to stabilizing. We were heading for Great Depression 2.0!