Big Gains from the Big Banks!
It was a celebrated day for the powerhouse banks today on Wall Street with many big name banks seeing single-day gains topping 30 percent! Wells Fargo pretty much led the way for the market in general by reporting estimated earnings of $3 billion for last quarter, which apparently helped other big banks out as well. Bank of America’s single-day stock price rose by 35% compared to Wells Fargo’s, whose rose only 19%. Some analysts are even going as far as to say, “Trust us, the banks are fine.”
Notable Factors Affecting Wells Fargo’s Gains:
- expects earnings of $0.55/share from last quarter
- notable gains from it’s Wachovia acquisition
- Mortgage applications were 64% higher than the fourth quarter of last year
- $84 billion mortgage applications in March
- 25% of it’s mortgage apps. were from purchasing rather than refinancing (people are buying homes!)
- $3 billion expected revenue from last quarter
Single Day Gains from the Big Banks:
(stock prices as of closing bell April 9, 2009)
Bank of America (BAC): up 35.27% to $9.55 per share
Wells Fargo Bank (WFC): up 31.70% to $19.61 per share
Discover Financial Services (DFS): up 19.91% to $9.19 per share
CitiGroup Inc. (C): up 12.59% to $3.04 per share
