This is how it seems to go.  Some may call this being sneaky and unethical.  Others may call it just old-fashioned CYA.  Still others will say it's proof that on Wall Street nobody knows anything.  But I've been observing quarterly results for quite a few years now and it always seems to go the same way.  In the last week or two of each quarter, the market geniuses all start predicting gloom and doom, thereby driving the prices of the stocks all down.  They predict it so severely and so seriously that it can't help but turn out to be under, often considerably under, what the actuals turn out to be.  Then when the quarterly reports come in and they mostly turn out to "exceed expectations," the stock prices go zooming back up and the market geniuses make a fortune.  Well, it happened again today with the gurus continuing to lower their expectations for Q1 results, now predicting a 2.8% fall in profits whereas in January the forecast was for a 5.3% rise.  They've done this consistently for the past several quarters and this is one of the reasons why the market rallies when the earnings reports are published.  Despite the gloom and doom, the Dow went up 56 points anyway, but not without a great deal of commotion with the day seeing a 200 point swing between the high and low.  The rise was attributed to another rally in oil and the fact that, as the forecasts keep getting lowered, investors now expect these guesses to be beaten.  The skepticism is partly justified on the basis of the strong dollar and the horrible winter hurting production and sales all around.  But my bet is that we will soon be seeing a lot of Q1 earnings reports "exceeding expectations."  Volume was average at 6 billion.

Markets | Thu Apr 9, 2015 5:00pm EDT

Wall Street ends up on energy rebound; early earnings weak

NEW YORK | BY RYAN VLASTELICA

DJ:     17,958.73  +56.22      NAS:      4,974.57  +23.74      S&P:      2,091.18  +9.28

(Reuters) - U.S. stocks closed higher on Thursday, with energy shares leading the advance as crude oil rebounded off a sharp decline, while investors bet that companies would top lowered expectations this earnings season.

The day's gains were broad, with eight of the S&P 500's ten industry sectors up on the day. The market extended its gains in afternoon trading, putting the S&P 500 about 1.3 percent away from its record close.

Equities have struggled for direction of late, with investors seeing limited upside potential in equities, but also few alternatives for yield. Many investors are looking ahead to the first-quarter earnings season for market guidance.

Earnings for S&P 500 companies are seen falling 2.8 percent in the first quarter, according to Thomson Reuters data, compared with the rise of 5.3 percent that had been forecast on Jan. 1.

The drop in profits, especially for companies with multi-national exposure, is partially attributable to strength in the U.S. dollar. However, analysts said the currency impact would not necessarily be a long-term detriment to stock prices.

"To the extent the dollar means companies are losing business, it's a problem, but if earnings are just being translated into a stronger dollar, that's less of a problem," said Jim McDonald, chief investment strategist at Northern Trust Asset Management in Chicago.

"An earnings recession is only a real problem for stocks if it is accompanied by an economic recession, which isn't the case here. We're positioned for an upside move as expectations have been lowered to the point where we're set up for a positive surprise."

Among early reporters, Alcoa Inc (AA.N) fell 3.3 percent to $13.22 a day after it reported revenue that missed expectations. Bed Bath & Beyond (BBBY.O), which also reported weaker-than-expected results late Wednesday, fell 5.4 percent to $73.46.

The energy sector .SPNY climbed 1.5 percent on the back of a 1.8 percent rise in Brent crude LCOc1, which rebounded from a drop of 6 percent on Wednesday. Continued uncertainty about an agreement on Iran's nuclear program also provided a lift. ConocoPhillips (COP.N) rose 3.4 percent to $67.

In the latest economic data, jobless claims rose in the latest week, though the rise was smaller than anticipated.

The Dow Jones industrial average .DJI rose 56.22 points, or 0.31 percent, to 17,958.73, theS&P 500 .SPX gained 9.29 points, or 0.45 percent, to 2,091.19 and the Nasdaq Composite.IXIC added 23.74 points, or 0.48 percent, to 4,974.57.

After the market closed, PriceSmart Inc (PSMT.O) fell 2.6 percent to $83 after it reported it second-quarter results, while Medicines Co (MDCO.O) sank 8.3 percent to $25.50 after giving a first-quarter revenue outlook.

Declining issues outnumbered advancing ones on the NYSE by 1,513 to 1,506, for a 1.00-to-1 ratio on the downside; on the Nasdaq, 1,393 issues fell and 1,314 advanced for a 1.06-to-1 ratio favoring decliners.

The benchmark S&P 500 index was posting 13 new 52-week highs and 1 new lows; theNasdaq Composite was recording 76 new highs and 29 new lows.

About 6.07 billion shares traded on all U.S. platforms, according to BATS exchange data, below the month-to-date average of 6.25 billion.