Why Bank of America Corp (BAC) Is Defying the Market Today

Page 1 of 2

Bank of America Earnings ReportAfter peaking this morning at $11.96, shares of Bank of America Corp (NYSE:BAC) are back down to $11.91, but up 0.21% overall after opening the day at $11.77. While 0.21% isn’t exactly a world-beating move, it’s move enough to easily beat the remainder of its big-five brethren.

The tale of the ticker
Here’s where some of banking’s big guns are shaking out so far:

1). Citigroup Inc. (NYSE:C) is down 0.09%.

2). JPMorgan Chase & Co. (NYSE:JPM) is down nearly half a point, dropping 0.47%.

3). Goldman Sachs Group, Inc. (NYSE:GS) is down nearly a quarter of a point, falling 0.23%.

4). Morgan Stanley (NYSE:MS) is down 0.04%.

And the big banks, barring B of A, aren’t the only market laggards today: All the major U.S. indexes are flat or down as well. What’s driving the market down, and why is B of A doing such a good job of going against it?

Riding the wave
Mixed earnings results from a wide range of companies could be behind the day’s bear market. According to Financial Times, every major sector is trading lower today, except consumer discretionary companies, which are up a bit.

As for B of A, there’s no easily quantifiable reason for why it’s running with the bulls today. There’s no “breaking” good news for B of A or anything like that. One possibility is pure momentum. As investors know, the bank has been on a tear for more than a year now. As choppy as the stock has been lately, it’s been on an undeniable upward trend. Investors are bullish on B of A overall, which helps keep the stock buoyant even as everything around it is either treading water or sinking.

Bank of America is far from my favorite bank (very far, actually), but even I’ll admit that there have been some bright spots for the banking giant that have stoked the fire fueling B of A bulls. Those bright spots include the continued clearing up of the bank’s legal liabilities, including the settlement with Fannie Mae last month.

We know that investor confidence goes a long way in investing, and B of A investors over the last year have rarely found themselves short of confidence in their favorite bank. But always remember that investing Foolishly means looking at the long term, and sometimes ignoring the day-to-day fluctuations in stock prices.

Page 1 of 2
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

Most Expensive Animals in the World

Most Expensive Specialty Crops in the World

Movies That Took Ages to Make

The Longest Hollywood Films Ever Made

Most Expensive Concert Stages

The Richest Bands of all Time

10 Most Corrupt Countries 2013 List

10 Countries with the Highest Quality of Life Index

Most Expensive Mattresses in the World

5 Smallest Countries by Land Area

The Ultimate Heartbreak Songs

Richest Teenagers in the World

10 Most Haunted Places in America

10 Best Places to Retire in Florida East Coast

Top 10 Places to See Before You Die

Top 8 Countries in the World Where Justice Prevails

10 Richest States in America

15 Wealthiest Countries in the World

Richest Singers in the World

Most Expensive Tasting Menu in New York City

Most Expensive Baby Items in the World

Most Expensive Hotel Suites in Vegas

Most Expensive Brunch in New York City

Most Expensive Beef Cuts in the World

25 Best Colleges to Get a Job

Top 10 US Supermarkets

The 25 Most Dangerous Cities in the World to Visit

Most Expensive Xbox Games

Top 11 Cities Where Billionaires Live

Top 10 Most Charitable Companies in America

Most Expensive Seafood in the World

The 10 Wildest Conspiracy Theories

The 10 Best Job Markets in the US

Top 10 Accounting Scandals of All Time

The 25 Biggest Cities in the World

Top 10 Best Paying Virtual Jobs

Most Expensive Leather Shoes in the World

Top 6 Things to Buy in March

The 10 Most Stressful Jobs in America – 2014 List

Top 10 Jobs for Introverted People

Top 10 Honeymoon Destinations in the World

Top 10 Highest Paying Jobs in the World

Most Expensive Day-Care in New York City

The 10 Cheapest Places to Retire Abroad

Top 10 Most Expensive Luxury Cars in the World – 2014

Killer Small Business Ideas

The 50 Best Personal Finance Blogs

Most Expensive Apartments in New York City

Bloodiest UFC Fights Ever Fought

Most Expensive Rum Brands in the World

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!