ROCK BOTTOM?

Stocks rebounded higher Thursday (4-9-2009) after banking giant Wells Fargo & Co. surprised the market with an early profit report that blew past analysts' expectations thanks to a strong pickup in its lending business. Investors have been grasping at any sign of improvement in the crippled banking industry, and Wells Fargo's report Thursday that it expects first-quarter earnings of $3 billion provided an encouraging sign that a deep freeze in borrowing activity may finally be thawing. Wells Fargo said it benefited from its January acquisition of Wachovia and an increase in mortgage applications.
"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."
Wells Fargo jumped 27 percent Thursday and several other major banks also rose smartly, including Citigroup Inc., up 10.7 percent; JPMorgan Chase & Co. up 12.7 percent, and Bank of America Corp. up 31.2 percent.