Wells Fargo Clocks The Financial Sector
While the markets are surging higher today, financial stocks are weak on the back of earnings from Wells Fargo & Company (NYSE:WFC). The company reported net income that rose 51% but revenue fell. Revenue dropped to $20.3 billion from $21.5 billion. This was mostly due to lower mortgage fees. Wells Fargo is getting hammered today, trading at $28.70, -1.37 (-4.56%).
The revenue miss on Wells Fargo is putting the whole financial sector under pressure. JPMorgan Chase & Co. (NYSE:JPM) is trading at $44.31, -0.34 (-0.76%) and Bank of America Corporation (NYSE:BAC) is barely positive, trading at $12.39, +0.05 (+0.41%). Goldman Sachs Group, Inc. (NYSE:GS) is slightly higher as well, $152.89, +1.03 (+0.68%).
While some of the financial firms like Goldman and Bank of America are slightly higher, the Dow Jones Industrial Average is soaring by 200 points. In other words, even the positive financial stocks are under performing. The overall financial earnings announcements from the major players have been somewhat dissapointing. JPMorgan, Goldman Sachs and Bank of America all sold off after they reported earnings. Today, Wells Fargo is selling off.
Special Note: The one saving grace about Wells Fargo is the 200 moving average it is hitting on the daily chart. This may act as a short term bottom on the stock, especially ahead of the light volume holiday this weekend.