Three movies earning Rs 120 cr on the day of release proves economy is sound: RS Prasad

Credit: Zee News- Published 1 week ago
Union Minister Ravi Shankar Prasad on Saturday refuted the worries surrounding the economic slowdown and cited the earnings of three blockbuster movies in a single day to suggest that the economy was sound.
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Credit: The Street
Published 4 days ago -  01:18
It's Not All Bad News For Wells Fargo's Earnings and the Economy
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

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Recent related news from verified sources

Mumbai: Dismissing concerns about economic slowdown, Union Minister Ravi Shankar Prasad on Saturday cited the earnings of three movies on October 2, saying they...
1 week ago • Mid-Day

"I was also told that on October 2, which is observed as one of the national holidays, three Hindi movies garnered Rs 120 crore business on that day. Unless the...
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