The Delayed Reaction to Wells

I wanted to make a brief comment on the recent price action of Wells Fargo ($WFC), and this is typical of how Wall Street behaves. The bank topped expectations by two cents per share yet the stock dropped yesterday morning after earnings.

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But after a day passed, the market suddenly changed its made and decided that the earnings were good. WFC rallied today and hit a fresh 52-week high.

Let me be clear: There was no important info that came out between the earnings report and today. Nothing. The market simply reacted first with fear, and then became more rational.

Posted by on January 15th, 2014 at 5:31 pm


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