(CBS/AP) Wall Street got some good news from Citigroup, and responded with a huge rally.
Led by financial stocks, the market made its first big move upward in weeks Tuesday after Citigroup Inc. said it had operated at a profit during the first two months of the year. All the major indexes soared more than 4.5 percent, and the Dow Jones industrials shot up more than 300 points.
Still, while word of Citi's performance at least temporarily broke a months-long torrent of bad news from the banking industry, analysts weren't ready to say the stock market was at a turning point and about to barrel higher.
I don't think that's rally is in any way an all clear signal for the market," Michael Farr, president of Farr, Miller and Washington, told CBS News. "The economy is in very tough shape. We are really struggling with out financial and banking system. And it may go lower."
But the Citigroup news offered investors some hope that the first quarter will show some signs of improvement.
"What about tomorrow? You know, carpe diem - live for the day. Enjoy this moment. We haven't had enough of them," said Farr.
In a letter sent to employees Monday, Citi Chief Executive Vikram Pandit said the first-quarter performance so far has been the bank's best since the third quarter of 2007 — the last time it recorded net income for a full period. Based on historical revenue and expense rates, Citi's projected earnings before taxes and one-time charges would be about $8.3 billion for the full quarter. - CBS
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