U.S. Secretary of State Mike Pompeo says Huawei CFO Meng Wanzhou, who is under house arrest in Canada and facing extradition to America, is not a bargaining chip in the trade...Technologyread more
Arturo Estrella has a message for recession naysayers: It could hit sooner than you think.Marketsread more
Local governments commonly share single service providers, making many vulnerable at once. On top of this, ransomware has often been used to mask more targeted, malicious...Technologyread more
Fed Chairman Jerome Powell faces the tough challenge of presenting a unified voice on Fed policy from the most divided Fed in years.Market Insiderread more
Meanwhile, investors look ahead to Fed Chair Jerome Powell's speech at a yearly central banking symposium in Jackson Hole, Wyoming.Asia Marketsread more
The office has long been a breeding ground for budding romances. But actively going into business with your other half is another thing entirely.Successread more
Salesforce released its first earnings report since its $15.3 billion acquisition of Tableau Software, the company's largest deal ever.Technologyread more
Kudlow also confirmed to CNBC that he supported a tax cut proposal floated earlier Thursday by Sen. Rick Scott, R-Fla.Politicsread more
VMware is following through on its proposal to buy Pivotal, a fellow Dell subsidiary, and expanding into cybersecurity with the acquisition of Carbon Black.Technologyread more
Google says it shut down hundreds of YouTube channels tied to misinformation around the Hong Kong protests.Technologyread more
It is a rare scenario where long-term interest rates suddenly fall below short-term interest rates.Real Estateread more
After working through the lingering effects of a fake account scandal, Wells Fargo will thrive in the coming years, according to one Wall Street firm.
Bernstein raised its rating for the bank's shares to outperform from market perform, predicting a big boost to Wells Fargo's earnings from tax reform. The bank could have a $2.5 billion gain in the fourth quarter 2017 because of adjustments for the tax cuts, partially offset by taxes on profits returned from overseas, Bernstein noted. Earnings per share could get a 15 percent boost, the firm said.
Wells Fargo suffered from multiple sales-related scandals in its consumer operations in recent years, including the discovery that millions of customers were enrolled in programs without their consent or knowledge by employees trying to meet aggressive sales goals.
"We believe Wells Fargo is gradually moving past its sales practices issues and associated revenue deceleration, and has opportunities to improve its returns and earnings trajectory through a combination of increased capital distributions and expense savings," analyst John McDonald wrote in a note to clients Wednesday. "We believe Wells Fargo will be a meaningful beneficiary of tax reform."
Wells Fargo underperformed the market in 2017. Its shares rose 10 percent while the S&P 500 gained 19 percent. The bank's stock rose nearly 1 percent Wednesday.
McDonald raised his price target for Wells Fargo shares to $69 from $64. The new target is 13 percent higher than Tuesday's closing price.
Better expense controls should be a boost to the shares in the next couple of years, the analyst said. "A meaningful step up in capital returns in 2018/2019 and expense savings realization in 2019/2020 can provide a lift" to future EPS, he wrote.