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
Cybersecurity pioneer and former Facebook security chief sketches chilling scenario for 2020 elections, laments arrival of 'disinformation as a service.'
Energy Secretary Rick Perry was one of the survivors in President Donald Trump's Cabinet, avoiding scandals that have taken out higher-profile figures
Global finance officials have wrapped up their fall meetings in Washington with a pledge to "employ all appropriate tools" to combat the weakest global growth in a decade
An attorney for the U.S. Army Corps of Engineers is asking a federal judge to sign off on the Corps' conclusion that the Dakota Access Pipeline doesn't harm American Indian tribes
Opposition to one of the nation's longest proposed new natural gas pipelines in the U.S. has grounded an unlikely alliance determined to stop the current project.
Japan has decided not to join a U.S. coalition to protect commercial vessels in the Middle East, but will send its own force to ensure the safe shipment of oil to Japan
California's top regulator excoriated top executives of the state's largest utility even as Pacific Gas & Electric officials said they know they failed to meet public expectations when the company cut the power to more than 2 million people last week
A former salon director who went public about sexual misconduct allegations against casino mogul Steve Wynn is suing Wynn Resorts and executives, alleging they invaded his privacy and spied on him at his next job in a bid to undercut his accounts