Banking, finance, and taxes
Wells Fargo (WFC) Up 8%: Bad News Is Good
Published:
Last Updated:
Wells Fargo’s (WFC) shares are up 8% on strong volume. The bank stock should be trading down along with Citigroup (C) and Wachovia (WB).
Due to the perverse reasoning of traders, Well Fargo is fine. Its bad news is better than the bad news from its peers.
RBC Capital Markets cut its earnings estimate for WFC. The research firm lowered its third-quarter earnings forecast to $.40 from $.53, while the full-year outlook dropped to $2.07 a share from $2.20.
Unlike may other banks, that means that Wells Fargo will have earnings.
Wells Fargo said its investments in the senior unsecured notes and preferred securities are included in securities available for sale at a cost of approximately $90 million and $109 million, respectively. In the scheme of things, that exposure is modest.
There will be very few winners in the current environment. WFC is one of them.
Douglas A. McIntyre
Get Ready To Retire (Sponsored)
Start by taking a quick retirement quiz from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes, or less.
Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.
Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future
Get started right here.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
