Wells Fargo stock drops 7% despite exceeding expectations in second-quarter earnings report

From CNBC: 2024-07-12 11:54:59

U.S. stocks rebounded on Friday after a tough trading session, with the S&P 500 gaining ground. Nvidia shares rose more than 2% after a 5% drop. June’s producer price index showed hotter-than-expected inflation, but it shouldn’t affect rate cut expectations. The Dow hit record highs again.

Wells Fargo’s stock dropped 7% despite beating revenue and earnings expectations in their second-quarter report. The focus is on net interest income (NII), which came in worse than expected due to higher funding costs and lower loan balances. The bank’s move into fee-based businesses like investment banking shows promise.

Morgan Stanley and Abbott Laboratories will report earnings next week. Banks saw strong results on Friday, setting a positive tone for Morgan Stanley’s investment banking business. Abbott Labs is expected to report solid results, although a trial concerning their premature infant formula remains a concern for the stock.



Read more at CNBC:: Wells Fargo stock down 7% despite its quarterly earnings beat