4.09.09

4.09.09

          A better than expected earnings pre-announcement from Wells Fargo sent the financial sector surging 15.5%, which induced buying in the broader market and helped the Dow move back above 8,000.

Wells Fargo isn't scheduled to officially announce first quarter earnings results until April 22, but came out Thursday morning to let investors know it expects to earn $0.55 per share for the quarter. Analysts had forecast earnings of just $0.24 per share. Wells Fargo also indicated its combined net charge-offs are down sequentially and that the legacy Wachovia business is operating well.

          Leadership from banks and other financial stocks helped bring about broad-based buying in each of the major indices. In turn, all three major indices were able to log their best single session percentage gain in two weeks and close at session highs. Each index advanced more than 3%. Small- and mid-cap stocks fared even better; the Russell 2000 Small-Cap Index spiked 5.9%, while the S&P 400 Mid-Cap Index tacked on 5.5%.

There weren't any market-moving earnings announcements released today. However, plenty of retailers were out reporting same-store sales results for March. Though the numbers generally showed declines, they weren't necessarily as bad as many had expected. That, combined with a positive bias in the broader market, helped retailers climb 4.6%. A strong bias in the equity markets didn't really carry over into commodities trading.

          The huge move in the banking sector caused a carry-over effect into the rest of the market and we will see what the action will be on Monday. If we see the market continue up on Monday, it will be a signal changing event. Stay tuned and check back after the market close on Monday.     

Till next time

The MTA Staff