Merrill Lynch & Co raised the flag of recession Friday -- and lowered it after less than an hour.
"We are now reviewing our forecast and think the economy could be beginning to look recessionary," Chief Economist Bruce Steinberg wrote in a note distributed by e-mail just before 9:30am New York time on Friday.
In a second e-mail tagged "additional details," the view had shifted: "After further consideration, we are not, at this point, moving to a recession forecast," Steinberg wrote.
The running commentary came after the Labor Department said the economy lost 223,000 jobs in April, more than in any month in the past 10 years. The result surprised 47 economists surveyed by Bloomberg News, who had predicted, on average, a 14,000-job gain. Wall Street pundits are quick to respond to US economic statistics.
"You feel you have to say something, so sometimes you say it too quickly," said Gene Grandone, head of research at Northern Trust Corp in Chicago.
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