Verizon Communications Inc. (VZ), Vodafone Group plc (VOD): Global Economic Growth Pushes the Dow Higher

Although the Dow’s two banks are performing well today — JPMorgan Chase & Co (NYSE:JPM) is up 0.2%, and Bank of America Corp (NYSE:BAC) has gained 0.6% — their close competitor Wells Fargo expects to see a big decline in the number of mortgages its makes this quarter, which will likely hurt all three companies. Wells Fargo chief financial officer Tim Sloan spoke at a conference this morning, saying he believes the bank will make 30% fewer home loans this quarter than last. During the second quarter of 2013, Wells Fargo wrote $112 billion in loans, and it expects to write only $80 billion during the current period. The decline is expected to come as a result of higher interest rates. Because Wells made more than one in every five home loans in the second quarter and JPMorgan Chase & Co (NYSE:JPM) and Bank of America Corp (NYSE:BAC) have both made it clear they want to get more involved in mortgage banking and shrink other units of their businesses, this massive drop in loans will likely have an effect on both of the Dow components.

The article Global Economic Growth Pushes the Dow Higher originally appeared on Fool.com andis written by Matt Thalman.

Fool contributor Matt Thalman owns shares of Bank of America and JPMorgan Chase. Check back Monday through Friday as Matt explains what caused the Dow’s winners and losers of the day, and every Saturday for a weekly recap. Follow Matt on Twitter @mthalman5513. The Motley Fool recommends Bank of America, Vodafone Group, and Wells Fargo. The Motley Fool owns shares of Bank of America, JPMorgan Chase, and Wells Fargo.

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