Why Shares of Wells Fargo Are Trading Lower Today
Shares of Wells Fargo (NYSE: WFC) traded nearly 5% lower as of 11:20 a.m. EDT today, compared to most bank stocks, which were closer to flat as long-term Treasury yields bounced. Wells Fargo continues to deal with regulatory issues, and an analyst recently downgraded the stock.
The yield on the 10-year U.S. Treasury note, which bank stocks tend to move in tandem with, surged to nearly 1.53% this morning, the highest it's been in months.
That should in theory push bank stocks up, but Wells Fargo continues to deal with pressure on the regulatory front. Yesterday, media outlets reported that the bank settled a long-standing investigation by the U.S. Justice Department into its foreign exchange services and whether it charged customers too much. The bank will pay a $37 million fine.
Source Fool.com