Bank of America Corp (BAC): Why The Stock Is Up Today

Page 1 of 2

Closing in on the end of the trading day, Bank of America Corp (NYSE:BAC) share prices are up 0.33%. They’ve been on the climb since last Friday, following a dramatic dip in share prices across all the big banks last Wednesday that I have yet to find a good explanation for.

Bank of America Corp (NYSE:BAC)

At the risk of looking a gift horse in the mouth, here are a few thoughts as to why Bank of America Corp (NYSE:BAC) and its big-four peers are doing so much better than they were this time last week.

Hale and hearty all around
But first, here’s a quick overview of the rest of the big four and the markets:

Citigroup Inc (NYSE:C) is up a big 2.61%.

JPMorgan Chase & Co. (NYSE:JPM) is up a healthy 1.21%.

And Wells Fargo & Co (NYSE:WFC) is up a solid 0.63%.

The markets are generally feeling hale and hearty, as well:

The Dow Jones Industrial Average is up 0.90%.

The S&P 500 is up 1.11%

And the Nasdaq is up 1.73%.

Defying expectations
So first, the markets are all up. And when the markets are all up, chances are your favorite stocks, like Bank of America Corp (NYSE:BAC), are going to be up as well. Or is it the other way around? It’s a virtuous circle, is the answer, at least for today. On other days, it’s a vicious cycle, and the markets and your favorite stocks are all down.

Earnings season is about to start, too. To kick things off in the banking sector, JPMorgan Chase & Co. (NYSE:JPM) and Wells Fargo & Co (NYSE:WFC) both report this Friday. This can affect stocks in two ways: Investors feel frightened at what they might hear, or hopeful.

By what we’re seeing with Bank of America Corp (NYSE:BAC)’s performance today, as well as with that of the superbank’s peers, it seems that investors are looking forward to the prospect of first-quarter earnings reports. Going on that theory, Citi investors must be feeling particularly hopeful, and well they should be: Last quarter’s earnings were startlingly good.

But in some ways, Bank of America Corp (NYSE:BAC)’s performance this week is defying expectations. Last Friday news broke that a federal judge signed off on a $2.43 billion settlement Bank of America Corp (NYSE:BAC) made with investors over allegations the big bank misled them when it bought Merrill Lynch. Now, the settlement was reached last fall, so it’s possible the market vented its fury at the deal then, but still, this news could have been a painful reminder.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The 10 Most Expensive States to Own a Car In

Top 10 Business Schools in US: 2014 Rankings

Top 20 Female Billionaires in 2014

6 Movies That You Should Watch to Better Understand The Cold War

Top 15 Best Paying Jobs for Women in 2014

Top 6 Things Rich People Do Differently Every Day

5 Retirement Mistakes To Avoid (and Einstein’s Famous Quote)

11 Smartest People in the World

6 Films About the Financial World You Need To Watch (While “The Wolf” is Not Around)

Warren Buffett and Billionaires Are Crazy About These 7 Stocks

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top 6 Tax Scams and How to Protect Yourself

Top Businesses to Invest In

Top 5 Things You Might Be Doing Wrong With Your Business

Top 5 Strategic Technology Trends in 2014

Top Rags to Riches Stories

Parenting Behavior That Promotes Future Leaders

Top 5 Mistakes Made by Small Businesses

Top 5 Most Common and Potentially Devastating Financial Blunders

Top 5 Highest Paying Jobs for Web Designers

Top 6 Most Respected Professions that Also Pay Well

Top 5 Pitfalls Investors Should Avoid

Top 6 Lawyers and Policy Makers Under 30

Top 6 New Year’s Resolutions for Entrepreneurs

Top 7 Locations to Check in on Facebook

Top 5 Mistakes made by Rookie eBay Sellers

Top 7 eBook Publishers in 2013

Top 6 Health Industry Trends in 2014

5 Lessons for Entrepreneurs from Seth Godin

Top 5 Success Tips from Jordan Belfort – the Wolf of Wall Street

Best Master’s in Finance Degree Programs

Top 6 Earning Celebrities Over 50

The most expensive sports to play

Top 7 Earning Celebrities Under 25

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!