Why Bank of America Corp (BAC) Stock Is Headed Higher

Whatever may be the case, there’s little question that we’re currently approaching this critical fork in the road, at which the Fed must decide which path to pursue. And it’s for this reason today’s data releases are so important. The first, issued by the Bureau of Labor Statistics, showed that core inflation — that is, consumer prices less food and energy — rose sequentially by only 0.1% last month compared to the consensus estimate of 0.2%. And the second, issued by the Commerce Department, estimated that new home construction ticked up by 24.9% in April over the same month last year. Critically, however, almost all of the growth in the latter was in multifamily construction, which is notoriously volatile, and not in the more important single-family space.

What does this mean for the Fed? That remains to be seen, but both would seem to indicate that it should not rush into a decision to taper. Either way, however, the market took the news in stride, sending stocks, and particularly those in the financial space, higher, as evidenced by Bank of America Corp (NYSE:BAC)’s ascent as well as the climb in the KBW Bank Index .

The article Why Bank of America Stock Is Headed Higher originally appeared on Fool.com.

John Maxfield owns shares of Bank of America Corp (NYSE:BAC). The Motley Fool recommends Bank of America and Wells Fargo & Co (NYSE:WFC). The Motley Fool owns shares of Bank of America Corp (NYSE:BAC) and Wells Fargo & Co (NYSE:WFC).

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.