Wells Fargo Slips on Net Interest Income Miss

After briefly hitting the pause button on the market rally on Thursday, major U.S. equities indexes roared back on Friday.

The selloff in tech stocks proved to be short-lived, as the sector rebounded in the week’s final trading session. The positive session also came as earnings kicked into gear, with a mixed bag of reports Friday morning from several of the nation’s largest financial institutions.

The S&P 500 added 0.6% on the day, partially rebounding from Thursday’s downturn to end the session just below Wednesday’s record close. An increase of 0.6% also left the Nasdaq just beneath Wednesday’s all-time peak. After touching an intraday record, the Dow ended 0.6% higher as well, closing above 40,000 for just the second time in history after first hitting the milestone in mid-May.

Enphase Energy (ENPH) shares shined on Friday after the firm introduced new U.S.-made residential and commercial solar equipment that will help enable customers to qualify for federal tax credits. Solar projects that meet certain requirements are eligible for the Domestic Content Bonus Credit under the Inflation Reduction Act. An increase of 6.9% made Enphase Friday’s top-performing S&P 500 stock.

Although other banks suffered declines in the wake of their earnings reports, shares of Bank of New York Mellon (BK) soared 5.2%, notching an all-time high. The investment banking firm posted better-than-expected revenues and profits for the second quarter, boosted by higher fee revenues. Although net interest income fell year over year, reflecting a change in the bank’s balance sheet mix, the key metric came in ahead of forecasts.

Ford (F) shares drove 4.2% higher after the carmaker reportedly launched a 0% financing offer on leases for two of its popular electric vehicles (EVs)—the Mach-E and F-150 Lightning. Ford’s announcement follows a favorable financing deal offered by Tesla (TSLA) in May on its Model Y vehicle as the companies jostle for position in the EV market.

Shares of Wells Fargo (WFC) plunged 6.1%, posting the heaviest losses of any S&P 500 component, after the financial giant reported a decline in net interest income, which appeared to overshadow better-than-expected revenue and earnings per share (EPS) results. Net interest income has come under pressure across the banking sector amid higher deposit rates and competition for customer money following the regional bank crisis in 2023.

Delta Air Lines (DAL) shares dropped 3.1%, extending declines posted in the prior session after the carrier missed second-quarter profit estimates, dragged down increased capacity limiting fare prices as well as higher costs. Delta’s forward outlook also raised doubts about the summer travel season.