Wells Fargo Revises Earnings

I would have hoped that by ringing the opening bell, I would have sparked a rally. No such luck.

The market is being weighed down by a major downward earnings revision from Wells Fargo (WFC). I recently spoke with Bloomberg:

“The S&P 500 decreased 1 percent to 826.99 at 1:03 p.m. in New York. The Dow fell 80.04 points, or 1 percent, to 7,852.72. The Russell 2000 Index of small companies slipped 0.5 percent as Coinstar Inc. rallied after increasing its 2009 revenue forecast.

“A few months ago I would tell people Wells Fargo and U.S. Bancorp are doing very, very good — I can’t say that anymore,” Louis Navellier, who manages about $4 billion as chief executive officer of Navellier & Associates in Reno, Nevada, told Bloomberg Television. “When you have increasing loan-loss reserves, you just can’t lend as much. That’s why it’s so important for Treasury Secretary Geithner to take some of the bad assets off the books.”

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