Finance

It's Not All Bad News For Wells Fargo's Earnings…

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

Cybersecurity whiz: Combined threats endanger…

Cybersecurity pioneer and former Facebook security chief sketches chilling scenario for 2020 elections, laments arrival of 'disinformation as a service.'

Fire at California oil facility prompts health…

A fire raging at an oil storage facility in the San Francisco Bay Area prompted authorities to order residents in two communities to shelter in place

AP FACT CHECK: Claims from the Democratic debate

AP FACT CHECK: Examining claims from the Democrats in their latest presidential debate

AdChoices Icon

Turkish bank charged with evading US sanctions on…

A major Turkish bank has been criminally charged in an indictment with participating in a multibillion-dollar scheme to evade U.S. sanctions against Iran

George Conway donates to Trump's GOP primary…

The husband of White House counselor Kellyanne Conway has donated to one of President Donald Trump's Republican primary challengers

Lawmakers: Tech giants have given some of documents sought

Lawmakers investigating the market dominance of Big Tech say they've received part of the information they requested from Google, Facebook, Amazon and Apple, and expect to get the rest soon.

Intel to pay $5M to settle pay discrimination allegations

The U.S. Department of Labor says it has settled with chip maker Intel Corp. for $5 million over pay discrimination against female, African American and Hispanic employees

EU: Brexit deal in sight but UK must still do more

EU officials are hoping a Brexit deal with Britain may be sketched out within hours, but negotiations have stretched into early Wednesday in the latest effort at producing an agreement in more than three years of false starts and sudden reversals

As NBA-China tweet rift continues, James enters…

The Rockets are not engaging in the conversation on LeBron James's criticism of Houston general manager Daryl Morey's tweet in support of Hong Kong's pro-democracy protests

Oklahoma regent resigns over role representing drug maker

A member of the board that oversees Oklahoma's 25 state colleges and universities is stepping down after facing criticism over his role representing drugmaker Johnson & Johnson in its legal fight with state over the opioid crisis

Australian left thirsty on Emirates flight loses injury case

A woman who said she was left thirsty by an Emirates cabin crew and broke her ankle when she fainted on the flight has lost her case in an Australian court

MGM Resorts sells Circus Circus, Bellagio on Las…

MGM Resorts International has announced the sale of two casinos that will significantly alter its portfolio of Las Vegas Strip properties and offer up cash

AdChoices Icon

Felicity Huffman starts serving prison time in…

"Desperate Housewives" star Felicity Huffman has reported to a federal prison in California to serve a two-week sentence in a college admissions scandal.

Only 3 returning big network shows see rise in live viewers

Of the 49 returning shows on the big broadcast networks, only three have more live viewers this season than they had in 2018

After ending protests, Ecuador faces dire…

Ecuadorian President Lenín Moreno survived the toughest political crisis of his presidency by negotiating an end to indigenous anti-austerity protests. Now he faces the even tougher challenge of getting government spending under control.

Google touts privacy options, but still depends…

Google says it cares about your privacy. Does it?

Catalan protesters, police clash for second…

Violent clashes have erupted for a second night in Barcelona between police and protesters angry about the conviction of a dozen Catalan separatist leaders

New study: Opioid crisis cost US economy $631B over 4 years

A new study finds that the opioid crisis cost the U.S. economy $631 billion over the past four years

Judge says he miscalculated award by $107M in…

An Oklahoma judge has acknowledged making a $107 million miscalculation in determining how much drug maker Johnson & Johnson must pay the state to help address the state's opioid crisis

Judge blocks Michigan's ban on flavored e-cigarettes

A Michigan judge is blocking the state's two-week-old ban on flavored e-cigarettes

Missouri appeals court overturns $110 million talc verdict

A Missouri appeals court has overturned a $110 million verdict in a case alleging that Johnson & Johnson products containing talcum powder caused a Virginia woman's ovarian cancer

AdChoices Icon

Nielsen's top programs for Oct. 7-13

A list of the top 20 prime-time programs in the Nielsen ratings for Oct. 7-13

United Airlines posts $1 billion profit on summer travel

United says strong demand from leisure and business travelers is pushing its third-quarter profit to $1 billion

The Latest: Michigan governor vows to appeal e-cig ruling

Michigan governor says she will appeal a ruling that blocks enforcement of state's ban on flavored e-cigarettes