Why Bank of America Corp (BAC) Stock Is Stumbling

The irony, of course, is that any drawdown in support would be a sign that things are improving. As an equity strategist told Bloomberg News, “The market is choosing to ignore the good news embedded in the Fed’s comments. All it’s looking at is the reduction of the accommodation.”

For investors, much of this is just noise. And in the banking sector specifically, as I’ve noted before, there’s reason to believe that the Fed’s reduction in support could be a net positive if the resulting upward movement in net interest margins more than offsets the reduced noninterest revenue from mortgage underwriting fees, which it could.

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

John Maxfield owns shares of Bank of America Corp (NYSE:BAC). The Motley Fool recommends Bank of America. The Motley Fool owns shares of Bank of America Corp (NYSE:BAC).

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