Stocks Surge After Roubini Nod

Updated with Nouriel Roubini statement.

The major indices advanced about 1% Thursday after reportedly bullish comments from noted economist Nouriel Roubini inspired afternoon buying -- but after the market close he said not so fast.

The Dow Jones Industrial Average rose 95.61 points, or 1.1%, to 8711.82, while the S&P 500 added 8.06 points, or 0.9%, to 940.74. The Nasdaq Composite added 22.13 points, or 1.2%, to 1885.03.

American Express(AXP) rose 3.9% to lead the Dow. It was followed by IBM(IBM), up 3.2%, and Walt Disney(DIS), which also climbed 3% after an analyst upgrade.

IBM and Google(GOOG) both beat profit estimates with their quarterly reports after the close.

Helping to fuel an afternoon turnaround were reports that Roubini said the worst of the financial crisis is over and predicted the recession will end this year. However, Roubini issued a statement after the market close saying his views are no different than in the past and if anything were taken out of context.

Also helping stocks, the National Association of Homebuilders said its homebuilder confidence index rose two points in July to its highest level since September 2008.

Financials were pressured early after small business lender CIT Group(CIT) said that "there is no appreciable likelihood" of new government support over the near term. (CIT shares plummeted 75% to 41 cents.) That news initially kept a lid on the enthusiasm that may have come from a better than expected earnings report out of JPMorgan Chase, the second big bank to surprise Wall Street this earnings season.