Wells Fargo & Co (WFC) Bounds Higher While Peers Fizzle

It’s been a crazy week on Wall Street, as markets swing wildly up and down, trying to get a handle on what the latest news from the Federal Reserve’s most recent meeting means to the investors of the world.

But, after suffering a terrific tumble yesterday, things are looking up today. A mid-morning check finds both the Dow and the S&P 500 in the green, and Wells Fargo & Co (NYSE:WFC) looking especially perky, having climbed nearly 1.6% already today.

Wells Fargo & Co (NYSE:WFC)

Most big banks still sulking
Unfortunately, the same can’t be said for the other big banks. Citigroup Inc (NYSE:C) has lost more than 3% since opening, while JPMorgan Chase & Co. (NYSE:JPM) is down by nearly 0.50%. Bank of America Corp (NYSE:BAC) , which had so bravely held its head above the $13 per share watermark for over a month, stumbled badly yesterday, falling to $12.89. The bloodbath continues today, and B of A has dropped almost 2.5% just this morning.

While much of the market unrest is likely because of continuing jitters concerning the Fed’s plans for QE3 and China’s economic lethargy, it is possible that some of the less-than-flattering news about the banking industry that graced headlines during the past week is to blame, as well.

For instance, the monitor’s report concerning the $25 billion National Mortgage Settlement pointed at all of the Big Four, including Wells. That certainly couldn’t account for the massacre that occurred yesterday, though — which was most probably part and parcel of the unstable ground that markets found themselves treading after Uncle Ben’s press conference on Wednesday.

One recent news item, however, could account for Wells’ elevation above its peers: Bloomberg reports that regulators are thinking of doubling the capital requirements for the biggest U.S. banks, bringing to 6% the ratio of capital-to-assets these institutions will be required to hold. Guess which bank already meets these stringent rules: that’s right, Wells Fargo & Co (NYSE:WFC).

Of course, nothing has been decided yet on that score, and there is doubtless still some volatility in the markets, which may not subside today. As Foolish investors well know, a snapshot look at any given stock, taken in isolation, can be detrimental to the long-term view. The big picture, as always, is what really matters, and the normal ups and downs of the market are something that investors with their eyes on the prize take into consideration, knowing that these hills and valleys are just part of the business of intelligent, long-term investing.

Wells Fargo & Co (NYSE:WFC)’s dedication to solid, conservative banking helped it vastly outperform its peers during the financial meltdown. Today, Wells is the same great bank as ever, but with its stock trading at a premium to the rest of the industry, is there still room to buy, or is it time to cash in your gains?

The article Wells Fargo Bounds Higher While Peers Fizzle originally appeared on Fool.com.

Fool contributor Amanda Alix has no position in any stocks mentioned. The Motley Fool recommends Bank of America and Wells Fargo. The Motley Fool owns shares of Bank of America Corp (NYSE:BAC), Citigroup Inc (NYSE:C), JPMorgan Chase & Co. (NYSE:JPM), and Wells Fargo & Co (NYSE:WFC).

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The Best B-Boy Movies

Most Awesome Hip Hop Documentaries

Foods That Stain Your Teeth

Richest Doctors in the World

The Best Movie Sountracks Ever

The Highest Grossing Musicals on Broadway

The Most Successful Reality TV Stars

Cheapest Cities to Visit in the US

Most Expensive Summer Camps

Most Expensive Animals in the World

Most Expensive Specialty Crops in the World

Movies That Took Ages to Make

The Longest Hollywood Films Ever Made

Most Expensive Concert Stages

The Richest Bands of all Time

10 Most Corrupt Countries 2013 List

10 Countries with the Highest Quality of Life Index

Most Expensive Mattresses in the World

5 Smallest Countries by Land Area

The Ultimate Heartbreak Songs

Richest Teenagers in the World

10 Most Haunted Places in America

10 Best Places to Retire in Florida East Coast

Top 10 Places to See Before You Die

Top 8 Countries in the World Where Justice Prevails

10 Richest States in America

15 Wealthiest Countries in the World

Richest Singers in the World

Most Expensive Tasting Menu in New York City

Most Expensive Baby Items in the World

Most Expensive Hotel Suites in Vegas

Most Expensive Brunch in New York City

Most Expensive Beef Cuts in the World

25 Best Colleges to Get a Job

Top 10 US Supermarkets

The 25 Most Dangerous Cities in the World to Visit

Most Expensive Xbox Games

Top 11 Cities Where Billionaires Live

Top 10 Most Charitable Companies in America

Most Expensive Seafood in the World

The 10 Wildest Conspiracy Theories

The 10 Best Job Markets in the US

Top 10 Accounting Scandals of All Time

The 25 Biggest Cities in the World

Top 10 Best Paying Virtual Jobs

Most Expensive Leather Shoes in the World

Top 6 Things to Buy in March

The 10 Most Stressful Jobs in America – 2014 List

Top 10 Jobs for Introverted People

Top 10 Honeymoon Destinations in the World

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!