Big Bank Stocks in Trouble: Wells Fargo (WFC)
Wells Fargo & Co (NYSE:WFC) shares are down 0.7%, after dropping as much as 2.7% after reporting results at the open. Last quarter, WFC attracted some attention for the poor loan growth trends it reported. This quarter repeated the theme. The company reported earnings of $1.03 per share, 2 cents ahead of estimates, on a 0.2% rise in revenue.
But here are the kickers: Auto loan originations fell 17% from the prior quarter and 45% from last year, mortgage loan originations fell 13% from last year and the mortgage loan pipeline contracted 28% from last year. Watch for a decline to support near the 200-day moving average, a level that has provided support for WFC multiple times since April.