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"Wells Fargo, which acquired Wachovia Corp. in December, said its larger market share punched up the company's mortgage business during the quarter. The strong performance comes as the housing market showed signs of thawing and home owners rushed to refinance existing loans.
"It expects to report earnings of $3 billion, or 55 cents a share, on revenue of about $20 billion. Analysts surveyed by Thomson Reuters were looking for earnings of 23 cents a share on revenue of $18.98 billion," reports WSJ.
A real estate broker from Canada Brad Compton says that the profit jump may have a confidence buildling effect in the U.S. mortgage and real estate sectors, which may minimally translate into Canada.
"The profit jump for Wells Fargo will have no immediate impact in Canada. It might have a marginal affect in the US to boost confidence, etc., which I guess would eventually trickle across the border to Canada. Wells has a very small presence in Canada so I doubt it would have much affect here. If a Canadian bank announces a profit jump it would be far more relevant. I will keep an eye on bond yields to see if the announcement has much affect."
Today - U.S. stock futures are signaling a solidly higher opening. The indications were for a modestly higher opening very early and the futures spiked higher after a high-profile bank indicated it would report 1Q earnings of $0.55 v. estimated $0.23.
Posted April 9th, 2009 by Armen Hareyan
