Bank stocks led the way on Tuesday, as the Dow Jones Industrial Average and S&P 500 both hit new highs.
The stock has the highest forward P/E among components of the KBW Bank Index, justified by strong long-term earnings and growth prospects.
Decent economic reports on Monday fed a rise in trust bank stocks, while large mortgage REITS fared poorly.
Oppenheimer analyst Christopher Glynn sees very strong industrial earnings trends for General Electric.
U.S. Bancorp trades lower to earnings estimates than most regional bank peers, despite having the best long-term earnings track record.
Stocks were strong on Friday as the dollar continued to strengthen and the price of gold sank by over 2%.
According to Franklin Codel, the bank's head of mortgage production, expenses will automatically be reduced as loan demand declines.
Fannie on Thursday announced it would pay a $59.4 billion dividend to the government, showing how lucrative the GSE bailout is becoming.
The profitable mortgage giant will make a $59.4 billion dividend payment to the U.S. Treasury after a huge release of deferred tax assets.
Wells Fargo showed the strongest credit card growth among major lenders in the first quarter, and is poised for even greater expansion.