Wells Fargo (WFC) this morning pre-announced a record 1st quarter saying it expects 55 cents in net income – compared to 23 cents expected by analysts. Net interest margins at 4.1%, Wachovia acquisition going great, etc…
Wells Fargo stock is up 22+%. JP Morgan (JPM) is up 13+%, Bank of America (BAC) 19%, Citi (C) 9%.
Let’s not forget that these donkeys raised their dividend by 10% to 34 cents back on July 16, 2008 resulting in a 33% one day blowout in their stock and other financials. Less than 8 months later (March 6, 2009), they lowered their dividend to 5 cents a share.
This has the feel of a capitulation panic buying session. Could this be the end of the bear market rally?
One other thing in the press release stuck out:
Wells Fargo continued to extend signficant amounts of credit to U.S. taxpayers in the first quarter 2009.
More than $225 billion of credit extended to U.S. taxpayers since early last October, nine time the amount received from U.S. taxpayers through the U.S. Treasury’s Capital Purchase Program investment.
Welcome to the USSA indeed!