Wells Fargo Leads Bank Retreat; Stocks End Mostly Flat (WFC, BA)

US stock indices saw little change on Friday but posted weekly gains for the most part. Multiple reports came out today including the US December budget deficit – the budget gap of $260 million was the lowest the government has seen for the last month of the year in five years. Data was also released showing a wider-than-expected trade deficit in November with US imports jumping close to four times more than exports. It is the largest gap since April, most likely due to record demand for consumer goods and sales of telecommunications gear. Wells Fargo & Co. (WFC) reported a decline in net interest and saw shares drop later in the day despite releasing a strong earnings profit. More banks such as Citigroup (C) and Bank of America (BAC) will be releasing their results next week. The euro jumped to its highest level against the US dollar since April 2012 on ECB support from Mario Draghi.

Word on the Street

• Trade deficit unexpectedly widens in November, imports jump four times more than exports.
• US budget deficit reported at $260 million, the best final month showing in five years.
• Netflix (NFLX) stock makes gains after saying its postal price will stay the same.
• The tech industry sags as sales of PCs drop over 6% during the fourth quarter.
• Wells Fargo’s (WFC) record fourth quarter earnings come with strings attached.
• US government to launch into comprehensive review of Boeing’s (BA) Dreamliner.
• Research in Motion (RIMM) shares rise on new gadget gossip.

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