- Wall Street Fears Dodd Bill
- Have Loan Losses Peaked for European Banks?
- Dow Industrials at New Highs—But Other Indices Lag
- Risk Trade Is Back On
- HMOs Up Despite Looming House Vote
- What The Street Thinks of The Jobless Report
- Friday It's All About Jobs, Jobs, Jobs
- October Retail Sales—The Good, Bad and Ugly?
- When Good News = Good News
- Retail And Jobs Lift Mood
TRADER TALK RSS FEED
MOST SHARED
- Bear Stearn Fund Managers Not Guilty on All Counts
- JPMorgan Chase to Hire 1,200 Mortgage Officers
- Parsing Treasury's Loan Modification Report
- Fighting The Flu Vaccine Critics
- Hottest Zip Codes for Home Prices
- Oil Tomorrow
- Commodity ETFs: Returns May Not Always Match Expectations
- A Squeeze on Customers Ahead of New Rules
- 'Thriller' Art: Warhol's Jackson Work Could Net $700,000
- Bair: Reserve Fund For Dismantling Must Be Set Up
- Starbucks Brews Up Growth
- Farr: An Extended Period—No Fat Lady in Sight
- More Upside if S&P Passes This Number: Market Pro
- Murdoch Lashes Out At Google
- Fighting The Flu Vaccine Critics
- Nov. 10: Unusual Volume Leaders
- Shadow Inventory Dwarfs Loan Mods
- The Lloyd's Prayer
- Playing Activision and Other Video Game Stocks: Analyst
- Three Things the US Can Do To Stop the Dollar's Decline
- Toll Brothers: More Contracts Signed, but Sales Down
- Fed's Lacker: US in a 'Good Place' With Inflation
- Bear Stearn Fund Managers Not Guilty on All Counts
- Commodity ETFs: Returns May Not Match Expectations
- Zucker to Head New NBCU-Comcast Venture: Sources
- JPMorgan Chase to Hire 1,200 Mortgage Officers
- Ponzi Proceeds: Bidding on Madoff's Toys
- Quiz: Do You Know Your Coca-Cola Myths?
More Videos
Trader Talk
Text Size 
Stocks, which had already been coming off their mid-morning lows, rallied further about 1:18 ET when it was announced that President Obama would make a major address on the U.S. economy tomorrow.
This created a flurry of buy programs which lifted stocks across the board.
As for the persistent rumor that Goldman will soon raise money for a secondary...traders are noting, only half-jokingly, that it would indeed make more sense to follow Dick Bove's observation...that if Goldman did raise money, they should first use it to pay off Warren Buffett! He's getting the 10 percent dividend, the government is only getting 5 percent!
The fallout from Wells Fargo's positive earnings comments on Thursday continue. Banks stocks are up again on hopes of positive comments…I noted last week that while Wells' comments appear to be good news, particularly since mortgage originations seem to be up significantly, there were substantial questions.
Over the weekend, a raft of analyst reports came out, essentially making the same points.
Analysts are asking:
1) Provisions for loan losses came in below expectations; how is this possible when credit continues to deteriorate?
2) There were no details on delinquency trends or Wachovia's credit losses.
3) There is strong suspicion that some other kind of accounting move may be largely responsible for the positive results.
Teri Buhl, who writes for housingwire.com, postulated this afternoon that part of the gains could be due to an accounting rule (FAS 160, which became effective this January) that has allowed Wells to book a substantial gain in earnings due to a legacy joint venture with Prudential Financial.
You can read more on this here.
Regardless, most traders believe that many of these banks will need to raise equity shortly after the stress test comes out; KBW this morning postulated that Wells might need to raise $50 b in equity.
Bulls argue a capital raise may not matter as much as bears think, and they point to the recent success of several REITs who have raised comparatively large sums to pay down debt and have not seen stock price declines.
_____________________________
_____________________________
Questions? Comments?
- Wall Street Fears Dodd Bill
- Have Loan Losses Peaked for European Banks?
- Dow Industrials at New Highs—But Other Indices Lag
- Risk Trade Is Back On
- HMOs Up Despite Looming House Vote
- What The Street Thinks of The Jobless Report
- Friday It's All About Jobs, Jobs, Jobs
- October Retail Sales—The Good, Bad and Ugly?
- When Good News = Good News
- Retail And Jobs Lift Mood
Data is a real-time snapshot *Data is delayed at least 15 minutes