WFC Q1 earnings rise

What happened: Wells Fargo (WFC) reported Q1 earnings of $1.60 per share, up from $1.39 last year, while revenue rose 6.4% to $21.446 billion. First Horizon Corporation (FHN) also saw a rise in Q1 earnings to $0.53 per share from $0.41 last year. Despite this, Wells Fargo stock fell due to several metrics missing analyst expectations.

Market impact: The banking sector saw a mixed reaction. Wells Fargo's underperformance led to a 2.5% drop in its stock price, while First Horizon's positive results pushed its shares up by 3.5%. This suggests investors are closely scrutinizing banks' performance, with earnings misses impacting share prices.

What to watch next: Wells Fargo's next earnings release on July 14 will be crucial to see if the company can revert its recent underperformance. Additionally, the Federal Reserve's interest rate decision on May 3 will impact banks' net interest margins, affecting their future earnings potential.