Today’s open was shaping up to be a relatively uneventful affair and then Wells Fargo stepped up and said it expects record first quarter earnings. Stocks spiked on the news, climbing nearly 3%. Wells Fargo announced that it expects first quarter earnings to come in at $0.55 per share, which is well above the consensus estimate of $0.23 per share. The bank also indicated that its combined net charge-offs for the first quarter are $3.3 billion, down from the combined net charge-offs of $6.1 billion incurred in the fourth quarter. While Wells Fargo's announcement effectively raises the bar for its peers, it also gives investors confidence in other diversified bank stocks.
The positive news from the banking industry is overshadowing the mornings other news. Wal-Mart said same-store sales were higher, but lower than expected. Initial claims, meanwhile, dipped to 654,000 from 674,000 in the previous week. This was lower than the 660,000 consensus. There will be some relief that the initial claims did not worsen, but the level still indicates a very week labor market.
- Harrington Wealth Management
- Our firm provides comprehensive trust and investment management services by employing a customized asset allocation approach. By focusing on the individuality of each client, Harrington Wealth Management Company has helped high net worth individuals, families, and small institutions grow and sustain their wealth through proven investment practices since 1994. A fee-only advisor, we also offer other financial services from our offices in California, Kansas and Indiana that include custody, estates, land trusts, probate administration, guardianships, personal trust administration, retirement plan services, and investment consulting services.
