This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Wells Fargo: Financial Winner

NEW YORK ( TheStreet) -- Wells Fargo was the winner among resurgent large U.S. banks on Thursday, with shares rising more than 2% to close at $40.72.

Bank stocks rebounded from a four-day slide, heading into the Labor Department's monthly non-farm payrolls report on Friday, which will include the U.S. unemployment rate. The KBW Bank Index (I:BKX) rose over 1% to close at 60.64, with all but one of the 24 index components showing gains.

The broad indices all ended with gains to snap a two-day losing streak, after the Department of Labor said initial unemployment claims during the week ended June 1 totaled 346,000, declining by 11,000 from an upwardly revised 357,000 the previous week. Economists polled by Thomson Reuters on average expected new jobless claims to come in at 345,000. The four-week moving average for unemployment claims was 352,000, increasing from a revised figure of 348,000 the previous week.

On a positive note, outplacement consultant Challenger, Gray & Christmas said that job cuts in the United States during May totaled 36,398, which was a decline of 4.5% from April, and the third straight monthly decline. Year-to-date layoffs were down 11%, according to the report.

Earlier on Thursday the European Central Bank announced it would leave key "interest rate on the main refinancing operations," unchanged at 0.5%, while keeping its deposit facility rate at 0.00%. ECB president Mario Draghi said during a press conference that a negative bank deposit rate was under consideration, because of "downside risk" for the European labor market.

"The accommodative stance of our monetary policy, together with the significant improvements in financial markets since mid-2012, should contribute to support prospects for an economic recovery later in the year," Draghi said.

The Bank of England on Thursday also said it would leave its benchmark interest rate unchanged at 0.5%, while maintaining "the stock of asset purchases financed by the issuance of central bank reserves" at 375 billion pounds ($578 billion).

Wells Fargo

Shares of Wells Fargo have returned 21% year to date, following a 27% return during 2012. The shares trade for 1.8 times tangible book value, according to Thomson Reuters Bank Insight, and for 10.4 times the consensus 2014 earnings estimate of $3.90 a share. The consensus 2013 EPS estimate is $3.71.

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,055.87 -116.81 -0.68%
S&P 500 1,982.77 -11.52 -0.58%
NASDAQ 4,508.6880 -19.0010 -0.42%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs