Wells Fargo's profit expectation lifts bank stocks

Wells Fargo said it expects to report a $3 billion first-quarter profit. The outlook sparked a rally by bank stocks, but results from other financial institutions will test that budding optimism. Wells Fargo's surge in net income comes mostly from a recent increase in mortgage volume and its acquisition of Wachovia. "We have put a lot of their losses behind us when we closed the deal," Wells Fargo Chief Financial Officer Howard Atkins said. "We are now enjoying some of the benefits from their revenue."

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