Why Wells Fargo & Co (WFC) Hit a New High This Morning

Since we know the Fed will not be slowing its stimulus plan earlier than anticipated, and that it may be a while before the Fed Funds Rate moves higher, this market is rife with conditions that Wells Fargo can capitalize on as the biggest mortgage lender in the land.

3. Three-peat?
Friday was a great day for bank investors, with both Wells Fargo & Co (NYSE:WFC) and JPMorgan reporting huge wins. This morning was a repeat of those results as Citigroup Inc. (NYSE:C) beat analyst expectations thanks to trading gains and lower loan losses. With the momentum favoring the banking sector, it’s no surprise that Wells investors would boost the bank today, but there may be more in store later this week as Bank of America Corp (NYSE:BAC) is set to report earnings on Wednesday.

If B of A announces similar earnings and mirrors the conditions reported by the other members of the Big Four, there will be a lot of confidence in the banking sector as a whole moving forward. The banks have been able to manage the challenges posed by the current economic conditions. And though no one knows exactly what will happen once the Fed begins tapering, the proof is already in the pudding that management within the Big Four is ready, willing, and able to negotiate through the new environment.

The article 3 Reasons Wells Fargo Hit a New High This Morning originally appeared on Fool.com and is written by Jessica Alling.

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

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