(WFC) is said to be ramping up its securities business. According to the Wall Street Journal,
the San Francisco-based bank has largely avoided the investment-banking and capital-markets business lines, but CEO John Stumpf said today that it now wants to “grow and invest” this field, which it inherited from Wachovia.
The new business will be called Wells Fargo Securities and will compete with other banks that offer merger-and-acquisition advice, underwriting in stocks and bonds, loan syndication, and fixed-income trading.
Wells seems to recognize that Wachovia had some quality business lines which could ably service its own clients. A rebound on the Street has also allowed profits to surge as the credit markets stabilize.
Wells Fargo stock finished the day up $0.02, or less than a percent, to 23.10. From the Bull Pen
: Today was a very light trading day, but it does seem like the S&P 500
avoided disaster by recovering from early morning weakness. Toddo pointed out the stealth snapper in Grandma Goldman
(GS) earlier this afternoon. Banking bulls can also look to WFC with nice defined support near $22 on the daily chart. A sell stop can be set below that level. From the Bear Cave
: As Professor Quint Tatro mentioned, the downside move was Wednesday, and Thursday. For bears, standing aside and awaiting better entries isn’t ever a bad idea.
How rough was this Monday coming back from the long weekend? I hope your evening gets better. Have a good night, and I’ll see you in the morning!
No positions in stocks mentioned.
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