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This Week in Finance: Wells Fargo, Bank of America, JPMorgan, and More

Although the outcome was unexpected, investors in many big financial stocks had a week to remember due to America electing Donald Trump as the next President of the United States. In this article, we recap the meaningful events that occurred to Wells Fargo & Co (NYSE:WFC), Bank of America Corp (NYSE:BAC), E*TRADE Financial Corp (NASDAQ:ETFC), JPMorgan Chase & Co. (NYSE:JPM), and Goldman Sachs Group Inc (NYSE:GS) this week and check how the smart money were positioned among the five stocks.

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Bank of America Corp (NYSE:BAC)JPMorgan Chase & Co. (NYSE:JPM), and Wells Fargo & Co (NYSE:WFC) all handily beat the S&P 500 this week thanks to the U.S. election outcome on November 8. Due to the perception that President-Elect Donald Trump will roll back the regulations on community banking and ‘dismantle’ Frank-Dodd, Bank of America rallied 14.9% and JPMorgan surged 13.1% to both hit 52 week highs. Even perennial laggard Wells Fargo rallied 15.99% for the week, or over quadruple the S&P 500’s advance of 3.79%. Some traders likely bought Wells after the Oracle of Omaha, Warren Buffett, said on Friday that he hasn’t sold a single share of the bank after its ‘terrible mistake’ of tolerating shady sales practices in the past. Buffett thinks Wells Fargo is a great institution and he believes the bank has the right man to right the ship with CEO Tim Sloan.

Although Trump isn’t exactly a fan of big banks given that his website released the following as justification for the repeal of Frank-Dodd:

big banks got bigger while community financial institutions have disappeared at a rate of one per day, and taxpayers remain on the hook for bailing out financial firms deemed ‘too big to fail… The Financial Services Policy Implementation team will be working to dismantle the Dodd-Frank Act and replace it with new policies to encourage economic growth and job creation

Many traders think that Trump’s replacement policies will nevertheless help boost return on capital at the major banks.

Follow Bank Of America Corp (NYSE:BAC)
Trade (NYSE:BAC) Now!

Follow Jpmorgan Chase & Co (NYSE:JPM)
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According to our database of 749 top funds, 102 were long Bank of America Corp (NYSE:BAC), 99 had bullish positions in JPMorgan Chase & Co. (NYSE:JPM), and 88 owned Wells Fargo & Co (NYSE:WFC) at the end of June.

Follow Wells Fargo & Company (NYSE:WFC)
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On the next page, we recap the events that occurred to E*TRADE Financial Corp and Goldman Sachs Group Inc.

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