Stocks rose sharply Thursday, ending the week on a positive note after Wells Fargo forecast a nearly $3 billion quarterly profit, adding to hopes that the banking sector is stabilizing. It was the fifth consecutive week of gains for the three major indexes. Markets will be closed for the Good Friday holiday. In economic news, the U.S. trade deficit fell more than 28 percent in February, dropping to its lowest level since late 1999. Jobless claims fell to 654,000 last week from 674,000 the previous week, but the number of people who continue to receive unemployment benefits rose to a record high of 5.84 million. Light sweet crude oil for May delivery rose $2.86 to $52.24 a barrel on the New York Mercantile Exchange. The U.S. dollar gained versus the euro and the yen. U.S. retailers said March sales fell 1.8 percent, double the drop expected by analysts. The results were a setback following an improvement in February, when sales rose 0.3 percent. Berkshire Hathaway, the diversified company owned by billionaire Warren Buffett, lost its top credit rating at Moody's. The agency cut the rating on Buffett's company by two degrees, saying the recession and the company's investment losses were making it harder for Berkshire to meet its funding needs. Wells Fargo said it expects to report profit of about $3 billion in the first quarter, surpassing analyst estimates. The bank said the strong quarter was due to the performance of its traditional banking and mortgage units, as well as the continued benefits from its 2008 purchase of Wachovia. Wells' shares jumped 28 percent. The Dow Jones industrial average rose 246.27, or 3.1 percent, to 8,083.38. Citigroup, Bank of America, and J.P. Morgan Chase rose along with the news from Wells Fargo. Conglomerate 3M is offering 3,600 employees, or about 11 percent of its workforce, early retirement. The company already has cut 3,600 jobs this year. Wal-Mart Stores reported a smaller-than-expected rise in sales, and its shares fell 3 percent. It was one of only three Dow components to fall Thursday. The broader Standard & Poor's 500 index rose 31.40, or 3.8 percent, to 856.56. The technology-heavy Nasdaq composite index rose 61.88, or 3.9 percent, to 1,652.54. The New York Stock Exchange composite index rose 200.03 to 5,376.44. The American Stock Exchange composite index rose 6.08 to 1,393.72. And the Russell 2000 index rose 26.07 to 468.20.
