Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Bank of America Corp (BAC) & The Other Banks: The News You Need To Watch For This Week

Bank of America Corp (NYSE:BAC)In this series, we’ll explore the data announcements and events that may impact the performance of bank stocks during the upcoming week.

With the market at all time highs, and the banks on the rise as well, it’s important for bank investors to keep tabs on the news announcements and data releases that could effect the direction your stock moves. With the coming week delivering a big dose of housing market news, this will be an important one for the banks, who need to see an increase in lending activity to maintain their profitability.

Let’s take a look at what’s going to be announced, what banks may be affected the most, and what you should look out for in the coming days.


NFIB Small Business Optimism Index — keeping the pulse of the small business community, the index provides some insight to investors on how business owners feel about the current state of the economy, their willingness to hire new employees, and comfort with new borrowing for operations. This is a particularly interesting index for the banks that look to business lending while the demand for mortgages flags. Bank of America Corp (NYSE:BAC) has been the poster child for chasing small business, with a few of their new commercials featuring the strong partnership of the bank with local businesses.


Housing Market Index — The information found within this index is the monthly mother lode of the housing market data points. With both JPMorgan Chase & Co. (NYSE:JPM) and Wells Fargo & Co (NYSE:WFC) reporting a drop in mortgage revenue during the first quarter, bank investors should be interested in this index for the data it can provide on current and pending home sales, the six-month outlook for home sales, and the flow of new potential buyers into the market. Since we’ve seen an uptick in some demand for refinancings, this data will give you a better sense of how much new (more profitable) mortgage business could be walking through the banks’ doors.

MBA purchase applications— Last week we saw a rise in the purchase applications index of 7%, mostly driven by the continued rush to refinance while rates are at historical lows. With refinancings accounting for 75% of this index during the months of 2013, look for a declining trend that starts to favor mortgage business. That will be the turning point for both the banks and the housing recovery.

Bank Reserve Settlement — A bi-weekly checkup on the capital reserves of the nation’s banks, the settlement can show investors who is struggling to catch up at the last minute. Since the capital plans for most of the big banks were approved and the Fed’s stress tests showed most were overcapitalized, there’s no real threat that any of the major players will be struggling to meet their requirements.


Jobless claims — We’ve seen how the labor market can influence the mood of Mr. Market overall. Since there was an unexpected drop in the unemployment rate a little over a week ago, a continued trend of declining jobless claims will most likely boost the markets as a whole, including the banks.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.