Banks Lead Markets Higher
By:
Avi Wednesday, January 28, 2009 1:18 PM
Markets are having a strong day ahead of the FED meeting in the PM. Dow is up 128, advancers over decliners 6-1 & NAZ is up 41. Banks are leading the charge from their depressed lows.
Wells Fargo (WFC), one of Berkshire Hathaway's big investments, rose 3.89 (24%) on what was considered a good report. They are a big home lender, which was responsible for their first loss in 8 years. The Wachovia acquisition also was a drag. But the stock gained 3.54 (20%) when WFC maintained the dividend & added it won’t need more federal aid.
•Wells Fargo Has First Loss Since 2001; Shares Jump as Bank Keeps Dividend
Their announcement lifted all bank stocks as shown below:
S&P 500 FINANCIALS INDEX
Value
135.67 |
Change
12.83 |
% Change
10.4% |
The Federal Reserve will issue a statement from their meeting this PM, but there is no room left for rate cuts. The FED will probably discuss their ideas about keeping (absorbing) bad loans. That idea is political & is difficult to evaluate. Even more than usual, what they say will move the markets.
The Alerian MLP Index continues on its recovery road.
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