Stocks rallied overnight, with the momentum carrying beyond the opening bell, after the International Monetary Fund (IMF) increased its 2014 growth estimate for the U.S. economy to 2.6 percent from 2.5 percent. Also helping to feed bullish sentiment, Apple led the Nasdaq higher on the announcement of its deal with China Mobile.
Much derision is heaped on organizations like the IMF for their forecasts, which are regularly revised and mostly wrong. But remember forecasters of all stripes are usually wrong. Recall last year, when most analysts were expecting stocks to rise a relatively meager 8 to 10 percent; meanwhile, the S&P 500 is actually up 27 percent so far. This year, once again, forecasters are expecting stocks to rise 8 to 10 percent.