NEW YORK
(MarketWatch) -- Wells Fargo shares rose 6% on Friday after the bank
said its business has been strong in the first two months of the year,
and that it expects its integration of Wachovia to cost less than
previously expected.
The broader banking and financial sectors fell. The KBW Bank ETF
(KBE:KBW Bank ETF
Last: 9.31-0.23-2.41%4:00pm 03/06/2009
Delayed quote data Sponsored by:
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KBE 9.31,
-0.23,
-2.4%)
declined 2.4% and the Financial Select Sector SPDR ETF
(XLF:Select Sector SPDR: Financial Select Sector SPDR Fund
Last: 6.18-0.06-0.96%4:00pm 03/06/2009Delayed quote data Sponsored by:
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XLF 6.18,
-0.06,
-1.0%)
, which tracks the financial stocks in the S&P 500, fell 1%.
Wells also cuts its dividend 85% in a move it said would help it
strengthen capital levels and pay off the government's recent
investment in the firm.
While a dividend cut would normally weigh on shares, Wells cut was
expected, and market participants seemed to agree with the firm that in
the short term the capital is better spent trying to untangle itself
government investment.
