Wells Fargo earnings weren't exactly what investors were looking for, but there was one positive in the report the could bode well for the bank and will bode well for the economy. Wells Fargo shares fell 1.32% to $48.62 apiece Tuesday after the consumer banking giant missed earnings estimates. Here were the results: Earnings per share for the third quarter came in at $1.12, missing Wall Street's forecast of $1.15. Revenue, though, was $22.01 billion, better than analysts estimates of $21.19 billion. Negatively, Wells Fargo's net interest margin, or the marginal difference between the interest at which the bank borrows at and lends at, missed estimates. The margin was 2.66%, missing expectations of 2.69%. Net interest income was $11.63 billion, missing expectations of $11.7 billion. Lower interest rates in the U.S. put pressure on Wells Fargo's ability to lend at attractive rates. But here's the good news: The lower interest rates spurred loan growth, especially in home loans. Wells Fargo's loan originations grew to $38 billion in the third quarter, better than the second quarter's $33 billion. The company said this was a direct result of lower rates, spurring demand for houses. The volume growth in home loans was "primarily due to lower mortgage loan interest rates," Wells Fargo said in its earnings release. Of course, this was not enough to offset the lower results for the rest of the company's operations, but is certainly a tailwind for Wells Fargo going forward. For the rest of the economy, lower rates and stronger demand for housing is a positive. The broader U.S. market responded in kind. The S&P 500 rose 0.29%, with the other two major U.S. indices higher as well. The 10 year treasury yield fell to 1.69%, as investors are expecting to hear from several Federal Reserve members, who may point to further interest rate cuts. Stick with Real Money all day for the last on Stock of the Day Wells Fargo. Bull Market Fantasy: LIVE TUESDAY & THURSDAY @10:45AM Subscribe to our Youtube Channel for more videos : Listen our latest Podcasts on Soundcloud Catch Up: Today's Top News Videos Below
The tariffs the Trump administration is imposing on wine, liquor and cheese from Europe couldn't come at a worse time for small retailers, just weeks before the holiday season
An Indiana woman who had been drinking wine before she attacked a Delta Air Lines crew and federal agents on a flight has been sentenced to six months of probation
The International Monetary Fund's new leader says a U.S.-China trade truce could trim expected losses to the world economy but won't be enough to produce strong global growth
Jury selection for a major trial on the toll of opioids has resumed even as major drug distributors and manufacturers press for a settlement of thousands of claims against them
Mexico's president is celebrating the resignation of the longtime head of the country's oil workers union, who ruled the syndicate for nearly three decades with an iron fist before quitting following repeated scandals over alleged corruption
Johnson & Johnson agrees to $117M multistate settlement over allegations it deceptively marketed its pelvic mesh products, which support women's sagging pelvic organs, by not fully disclosing their risks.
An Atlanta businessman who pleaded guilty in a college basketball scandal that paid bribes to steer top athletes to certain schools and money managers has been spared prison time
British Prime Minister Boris Johnson has lost every important vote in Parliament, and he faces a titanic struggle when he puts his new Brexit proposal before suspicious legislators Saturday
A federal judge has temporarily blocked the Trump administration's attempt to ease restrictions on mining, drilling and grazing across millions of acres in seven U.S. Western states
A family business of West Virginia's billionaire governor has maxed out a taxpayer-funded subsidy program meant to help farmers through the U.S. trade war with China
European producers of premium specialty agricultural products like French wine and Italian Parmesan are facing a U.S. tariff hike due Friday with trepidation.
Catalonia's separatist leader is vowing to hold a new vote to secede from Spain in less than two years as the embattled northeastern region grapples with a wave of violence
A round of solid corporate earnings and a breakthrough in negotiations over Britain's exit from the European Union put investors in a buying mood.