Things change so quickly in Wall Street. Wells Fargo Bank said that it expects record first-quarter earnings of $3 billion, easily surpassing analysts’ estimates. Market participants are salivating for any good news. Wells Fargo news bumped up the Dow by 164 as I write this. S&P 500 is up by 20.
Good earnings from banks will definitely jump start the recovery process. Let us keep our fingers crossed for the earnings results of all the major banks. Wells Fargo is scheduled to announce earnings on April 22. Citigroup, Goldman Sachs and JP Morgan scheduled to report their earnings next week. Citigroup already announced that they had good profits in January and February. We need to see their earnings result for the entire first quarter.
If banks are getting in good shape, we may see more lending and better economic recovery in the next six to nine months. If all goes well, we may be out of recession by end of this year. That is a big “if”.
[...] earnings that were better than Wall Street analysts had expected. In the last week Wells Fargo projected record profits and stated that the mortgage market seemed to be turning around as they were seeing some notable [...]