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Jacob Sonenshine: Not all bad news for Wells Fargo in the economy. Let's get to the results first. Wells Fargo miss estimates slightly on all things that investors were looking for. Revenue missed. $21.2 billion was the result. Expectations for $22 billion earnings per share, $1 and 12 cents versus estimates of $1 and 15 cents. Net interest margin and that interest income both miss estimates. Net interest margin at 2.66% versus expectations of 2.69%. Lower interest rates, were the driver there for both the margin and the total income miss there. But that right there just that is the good news. Lower interest rates, spring mortgage loan origination volumes up to $38 billion in the third quarter, over $33 billion in the second quarter in the company saying specifically because of lower interest rates, helping to spur those loan volumes so that that was not enough to offset the quarter for Wells Fargo for them to reach or beat earnings expectations. Will it be in the future? It'll certainly be a tailwind. So decent news there in the earnings report for Wells Fargo, even though the stocks down a little bit and pretty good news for the economy. More the houses being bought, and you see all three US stock indices were higher on Tuesday.

Wells Fargo (WFC - Get Report) 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. 

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