Banks Lead the Stock Market Higher

A surprisingly strong profit outlook for Wells Fargo lifted the entire market as the Dow opened above 8000, up nearly 170 points.  Nasdaq leaped 30 points to 1661.

On the upside

Wells Fargo projected $3 billion in profits for the 1st quarter of the year.   Shares of Bank of (NYSE: BAC) and JPMorgan Chase (NYSE: JPM) joined the rally.

Gymboree (Nasdaq: GYMB) raised its 1st quarter profit outlook due to a significant increase in same-store sales during the month of March instead of a decline.

Department store operator Target (NYSE: TGT) posted lower revenues, but the results beat targets.

Shares of Textron (NYSE: TXT) rallied again on word that an Arab group may buy or take a significant stake in the aircraft and weapons maker.

On the downside

Wal-Mart Stores (NYSE: WMT) posted higher same-store sales that rose by 1.4% as recession-ravished consumers searched for bargains.  The results missed expectations.

Gran Tierra Energy (Amex: GTE) reached 15,000 barrels of oil in daily production at the end of the 1st quarter.  Investors were mildly disappointed by the announcement. 

In the broad market, advancing issues outpaced decliners by a margin of more than 7 to 1 on the NYSE and by more than 5 to 1 on Nasdaq.  The Russell 2000 which tracks small cap stocks surged 17 points to 459.