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.

About Gareth Soloway 168 Articles

Affiliation: InTheMoneyStocks.com

Gareth Soloway has been an avid swing and day trader since his days at Binghamton University where he studied Economics. After college, Gareth quickly excelled as a financial advisor, helping clients get their financial houses in order. While helping others gain financial independence, he continued to study the day trading and swing trading world, developing a unique market philosophy and proprietary methods. Following his work in the financial sector, Gareth went on to trade alongside professional traders. Unable to tolerate the hype of Wall Street any longer and having an amazing ability to profit using his developed techniques, Gareth Soloway decided to partner with his friend and colleague, Nicholas Santiago to form InTheMoneyStocks.com. Chief Market Strategist Gareth Soloway serves as the president and CFO of InTheMoneyStocks.Com.

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