Schwab (NYSE:SCHW) Shares Drop on Rising Cost Outlook

Charles Schwab Corp.'s (NYSE:SCHW) shares dropped on guidance their costs could rise by as much as 10 percent during 2011, adding they may have to waive more fees as well.

Citing several variables, including stock market activity, rates and trading, expenses at the discount broker could rise as high as 10 percent.

Schwab added revenue also has the potential to rise from a range of 10 percent to 25 percent, a somewhat dubious assertion, as that revenue range suggests they really have no idea how growth will go, because of the inherent fickleness in a still weakened economy, which has investors jittery and ready to stay put or run.

New revenue streams noted by Schwab included a 401k retirement package and adding more branches, which would operate independently from the existing branches.

Charles Schwab closed Thursday at $17.84, dropping $0.59, or 3.20 percent.