Wall Street Opens 2nd Quarter With a Gain (ext: ABCNews)

Wall Street opened the second quarter with solid gains, extending a four-week rally that brought the market off its lowest levels in 12 years.

After falling in the early going Wednesday on disappointing jobs data, the Dow Jones industrials closed up 153 points on economic data that showed a rebound in pending home sales and improving manufacturing activity. Major indexes all rose at least 1.5 percent.

The reports continued a run of positive economic news in recent weeks that has led many investors to wager that the recession is beginning to ease. Further signs of improvement in housing were especially positive for banks struggling with bad mortgage debt.

Despite the strong gains in March, analysts are still warning against calling a bottom to the market and say more volatility could be in store.

The Dow rose 152.68, or 2 percent, to 7,761.60, and broader market indicators also rose. The Standard & Poor's 500 index rose 13.21, or 1.7 percent, to 811.08, and the Nasdaq composite index gained 23.01, or 1.5 percent, to 1,551.60.

The market's advance occurred as the world's finance ministers gathered in London to discuss the slumping global economy. Speculation has risen in recent days that the various countries in the Group of 20 are disagreeing about how to handle the global financial crisis. Amid the backdrop of thousands of protesters, British Prime Minister Gordon Brown said Wednesday that the G20 was close to agreeing on global reforms for the financial system.

This week so far has been volatile, with the Dow gaining 87 points on Tuesday after plunging Monday by 254 points on President Barack Obama's rejection of General Motors Corp. and Chrysler LLC's restructuring plans.

Analysts expect that pattern to continue in coming weeks as uncertainty about first quarter earnings reports remains. "We're in a wait-and-see mode," said Brian Bush, director of equity research at Stephens Inc.

Analysts largely expect the reports to be negative, but with the bar already set so low, it's possible the market could move higher if the reports meet or exceed forecasts.