Wells Fargo Profit Beats Estimates as Mortgage Revenue Soars

by 15 Feb 2013

Wells Fargo recently made news as being the most valuable bank in the United States as well as the largest mortgage lender. In the third quarter, they had an increase of 2%, increasing their income from $4.06 Billion 12 months earlier to a current $4.94 Billion today. An impressive past year for Wells Fargo indeed, and much needed in today's market.

In other news, the Euro has grown stronger due to rumors about a potential bailout for Spain. Although the Spanish government has yet to confirm a bailout and is reluctant to accept one, the Euro is currently trading at .14%, much higher than previous days this week. However, the news is not entirely rosy. The home prices in the United Kingdom have fallen for the third month in a row, making people concerned about the state of the English economy. Currently, the EUR/GBP has fallen .02% in the past day.

In other economic news, the stocks are struggling to stay in the green area. The Dow has fallen steadily the entire week and while up earlier in the day, may not stay strong throughout the afternoon. Investors are eagerly watching to see the outcome. The Dow Jones is currently sitting at a decrease with .13% while the S&P 500 is down .42%, almost half a percent. The Nasdaq has also seen a decrease with .23%.

The bright light for economists today is the current news in oil prices. While oil consumption in the United States has dropped steadily in the past few years, the production figures are going up domestically. The determining factor when looking at the larger picture is the overall state of the economy, and its increase or decline in the following months. Currently, New York crude oil is around $91 and most experts believe that this price could fall a few more dollars. Currently, oil is trading slightly down at .37%. Many people are watching oil for a binary options trade.

Unfortunately, the good news coming with oil is off-set by current copper trading. The past four months have been hard for copper traders and they are feeling the strain. The slowing growth from China to Europe has hurt the demand for copper, a common metal in industrial applications, and will continue to be sluggish in the future. In a report released this week, 14 analysts agreed that the prices would continue to fall into next
week. In the following months, continue to watch the commodity and possibly opt for a binary option contract. Apple continues to have steady growth as they continue to develop and market new products, each one smaller than the previous. They are currently expected to release a smaller "mini" version of the iPad that will cost less than current models. This new tablet is expected to be released around the end of October. In anticipation of their new product, the trading is currently up about .56%. The buildup to the new iPad release will make a good binary options’ up trade for consumers.

Now that Wells Fargo and JP Morgan have had their best third quarter earnings in the history of their firms, all eyes are turning to Citibank. As strong competitors in the market, economists and consumers are interested in knowing what Citibank will do to remain competitive in this field. Their current numbers have been down with trading at -1.8%. However, Citibank has weathered until today and they could certainly make a comeback.

Best Buy which has been struggling lately, has been looking for new and innovative ways to remain current in today's market. Their strategy during the holidays was to match Amazon as well as other online retailers for price. The electronics retailer has served as a basis for price comparisons in the past, with consumers checking the product price on their site and then comparing it to the same product sold online. However, with the competitor price match, Best Buy is trading down at -.39%, but hopes to turn that number into a positive growth for the company.

Microsoft is doing well with their Xbox sales and currently holds a 49% share of the market, increasing about 21%.

Finally, Sony has struggled with both poor performance and a weak cash-flow. Moodys has recently downgraded the credit rating for Sony to BAA2, the second lowest investment grade possible. Their main issues are with the television and mobile phones.

By Brent Taylor.  Brentt Taylor is a professional writer with a focus on finance and economy. He is currently writing for Banc De Binary. You could reach him at brent@saveonmoney.org

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