A drop in energy prices is always exciting to end consumers as prices of goods and transportation are always guaranteed to drop; this, on the other hand, is never good news to stockholders in the energy sector according to CNBC’s Bob Pisani. A drop in prices in the recent days has seen energy stocks drop. Wells Fargo & Co (NYSE:WFC) on the other seems to excite Pisani despite being down for the past four consecutive trading sessions.
It awaits to be seen what impact the financial results will have on Wells Fargo, considering it has not been performing well in the recent trading sessions. The fact that Wells Fargo is easy to understand compared to other giant financial companies seems to have caught the attention of Pisani.
“I love wells Fargo. Why? Because it is in not Citigroup. It is easy to understand, it is a community bank, they do home loans, the do car loans they have mutual funds,” said Mr. Pisani adding that it would be vital to see how much the mortgage business has slowed down.
Wells Fargo has been one of the banks in the U.S that have been clumped with lawsuits after lawsuits related to operations carried out during the economic crisis in the mortgage sector. The bank has already carried out a number of layoffs as it looks to streamline its mortgage business to make it cost effective.
Pressure continues to mount on Wells Fargo considering it has been down four days in a row, in need of a boost from its financial results. “The big issue we want to know about, how much has the mortgage business slowed down. Slowed down a lot less the last quarter” Said Mr. Pisani.
The positive thing worth taking forward despite the recent challenges is the fact that Wells Fargo stock was $35 as of the start of 2013 but now, it is trading above the $50 mark. Mr. Pisani believes that this is a monster move for the biggest community bank in the world.