Wells Fargo preferreds fall post-earnings; Goldman Sachs closes softer; Ally closes steady

By Stephanie N. Rotondo

Portland, Ore., April 20 - A preferred market source said green was the "color of the day" on Wednesday, "in part driven by a stock market that got off to a strong start."

However, he noted that, "ironically," the three most active issues - one of which being Wells Fargo & Co.'s series F preferreds - were down.

Wells Fargo's preferreds fell after the company announced its first-quarter earnings. The preferreds traded in massive size - about 3.45 million shares changed hands.

A market source saw Wells Fargo's preferreds falling a nickel to $25.21.

The source noted that the common equity was "down a bunch," losing $1.24, or 4.12%, to close at $28.83 (NYSE: WFC).

"Relatively speaking, you would have rather had the preferreds over the common," he said.

For the quarter, Wells Fargo posted revenues of $20.3 billion, down 5.2% year over year. Mortgage-banking fees dropped 18% to $2 billion.

Profit, however, was up 48% at 67 cents per share, versus 45 cents per share the year before. Analysts polled by Thomson Reuters were expecting a profit of 66 cents per share on revenues of $21.24 billion.

"Although they beat expectations, it wasn't by a lot and it was beginning to show softness in profitability," the source said.

Meanwhile, Goldman Sachs Group, Inc.'s preferreds - also one of the most actively traded securities - dropped, just one day after the bank released its numbers.

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