Updated from 2:02 p.m. EDTA financial stock rally continued on Monday, as investors held out hope that Wells Fargo's ( WFC) preliminary earnings announcement last week was a reflection of the sector's improving health and not just a fluke. After the market closed, Goldman Sachs ( GS) followed up with its own preliminary report, topping expectations. The firm also confirmed widespread reports that it would issue new stock, in a $5 billion public offering, and look to use the money to repay federal bailout money. The KBW Bank Index closed up 7.9% at 36.47, as major financial components helped the Dow Jones Industrial Average pare earlier losses. American Express ( AXP) rose 8.7% to close at $20.46; Citigroup ( C) climbed 25% to $3.80; Bank of America ( BAC) gained 15.4% to $11.02; and JPMorgan Chase ( JPM) climbed a more moderate2.9% to $33.70. Other financial stocks outside the Dow had mixed results, with American International Group ( AIG) finished up 22.4% to $1.42 and Wells Fargo rose just 6 cents to $19.67 after soaring $4.72, or 32%, on Thursday to close the holiday-shortened week at $19.61. Some analysts became more positive on Wells following its surprise announcement that it expected a record first-quarter profit of over $3 billion. Fox-Pitt Kelton analyst Andrew Marquardt raised price targets on the firm, saying Wells is "in a better position than peers" because it is "ahead of the curve in recognizing credit costs" and poised to gain market share. Marquardt holds an outperform rating on Wells shares. Rochdale Research analyst Richard Bove also issued a bullish note, initiating Wells with a buy rating on Sunday evening. While both Bove and Marquardt acknowledged the risk of further losses on legacy assets from Wells' acquisition of Wachovia's troubled loans, they believe the company has the chops to come out ahead.