Home

Content about Wells Fargo

11.03.09
Pause before the drop

On Monday, the Dow closed up 76 points, only its fourth up day in the last ten trading days. The intraday action was volatile, however, with a range greater than 200 points peak to trough.

The volatility catalyst was a report from the Institute for Supply Management that indicated manufacturing activity grew in October at the fastest pace since April 2006. The 55.7 reading, if annualized, would imply GDP growth of 4.5%. Manufacturing activity improved worldwide, as well, suggesting that this is a synchronized global upturn. Things did not get better in Russia, however, and we think that country remains a short sale candidate. In other words, we are bullish on BIC not BRIC.

10.22.09
Gap testing

The market was continuing merrily in its bullish ways through most of Wednesday until a respected analyst downgraded Wells Fargo to ‘sell.’ Then all hell broke loose, causing the Dow to plunge about 200 points in one hour. Although the venerable index closed down less than 100 points, the intraday swing was remarkably swift and certainly reminded traders of the adage that stocks fall much more quickly than they rise.

Wells Fargo “beat the Street,” earning $2.6 billion or 56 cents per share for the third quarter. Analysts forecast just 37 cents a share. Credit losses more than doubled to $5 billion year over year, but interest income rose 43% to $5.5 billion and non-interest income from mortgage banking more than tripled to $10.7 billion.

10.22.09
Wild, Wild Wall Street

On a wild day on Wall Street, the Dow was up for most of the day and even touched 10,100 before falling apart an hour before the closing bell. Earnings reports from Morgan Stanley and Wells Fargo helped boost the index, but an analyst’s recommendation to sell Wells Fargo late in the day started a selloff in financials. The Dow ended Wednesday down 92 points, bringing it below 10,000 once again. Oil on the other hand has once again surpassed the $80 threshold and gold continues to shine. A falling dollar helped push oil past $82 a barrel before settling at $80.84 for the day.

10.21.09
Moment of Decision

The market was continuing merrily in its bullish ways through most of Wednesday until a respected analyst downgraded Wells Fargo to ‘sell.’ Then all hell broke loose, causing the Dow to plunge about 200 points in one hour. Although the venerable index closed down less than 100 points, the intraday swing was remarkably swift and certainly reminded traders of the adage that stocks fall much more quickly than they rise.