Jim Cramer fills his blog on RealMoney every day with his up-to-the-minute reactions to what's happening in the market and his legendary ahead-of-the-crowd ideas. This week he blogged on:
- How bank stocks must be doing if even Wells Fargo is gaining
- How Donald Trump and fossil fuels mix
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Cramer: When Even Wells Fargo Gains, Bank Stock Must Be Roaring
Posted on Nov. 17 at 11:43 a.m. EDT
The banks are on fire again Thursday. They are growing off the notion of faster growth in 2017, the deregulation that's coming and the notion of multiple rate hikes.
I am just putting this note out ahead of our Action Alerts PLUS conference call to say this kind of shallow dip buying confirms what I wrote earlier, which is that we can't be penny-wise. You simply may not get that large dip the more that we realize that the out-of-control compliance costs could be going away at the same time the rate hikes may be coming.
Look no further than the 0.8% gain of Wells Fargo (WFC) on the day when it issues a release saying customer interactions with tellers year over year for the month of October were down 10% and new credit card applications "continued their downward trend with applications down 50% year over year," in part because of reduced marketing spend but also because, again quoting WFC, "a full-month impact of customer reaction to the sales practices settlement." (Wells Fargo is part of TheStreet's Action Alerts PLUS portfolio.)