Some good news from the stock market today, as Wells Fargo reported today it expects first-quarter earnings of $3 billion, thanks to its acquisition of Wachovia and an increase in mortgage applications. This is the fifth straight week of gains in the stock market, a fact that’s notable considering the Dow hadn’t logged five straight weekly gains since October 2007, the stock market’s peak.
“The fact that Wells Fargo can have record profits despite the troubles facing the banking system tells you something,” said Rick Campagna, chief investment officer at 300 North Capital in Pasadena, Calif. “It’s very good news.”
According to preliminary calculations, the Dow rose 246.27, or 3.1 percent, to 8,083.38. It was the blue chips’ first close above the 8,000 mark in nearly a week and the highest finish since Feb. 9.
However, while the gains in the stock market are certainly a good sign, unemployment numbers are still high, with the number of Americans continuing to receive unemployment benefits setting another high. The unemployment numbers coupled with the rising stock market only serves to prove that while things may be improving for our economy, there’s still a lot of work to be done.