Banks were up sharply from depressed levels on good earnings & DIV news from Wells Fargo (WFC). Dow, NAZ & S&P 500 were essentially even & advancers over decliners by about 1.4 to 1. WFC reported sort of good earnings, earnings were down 22% at 53¢ but beat estimates of 50¢, along with a 10% increase in the div to 34¢ per qtr. A bank raising the div is unheard of these days. Bank of America (BAC) rose 1.35 reducing the yield to "only" 13%. Yesterday, US Bancorp (USB) reported lower earnings & sold off along with other banks but they have been getting thru the crisis better than others. Large positions in WFC & USB are owned by Berkshire Hathaway. Buyers jumped on the depressed bank sector but their enthusiasm did not spread to to other stocks.
The Labor Dept reported consumer prices were up 1.1% in June, highest rate in 26 years! Inflation readings haven't been pretty & have been holding back FED interest rate reductions to aid the economy. Oil had been down 6 earlier but bounced back to near break even at 138. Oil inventories gained 3MM last week vs a 3MM decline the prior week. In these days any thought can move its price around a lot.
Banks & financials will dominate the news. Just having congress sort out the FNM/FRE mess, over the short term, will add to what is already a confusing situation.
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