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

Page 2 of 2

So, why are many bank stocks rallying today?

While it’s always perilous to guess the reason individual stocks move in any particular direction on any particular day, it’s hard to dismiss the likelihood that yesterday’s comments by Bernanke have something to do with it — along with worse-than-expected weekly jobless claims. In an apparent retreat from his testimony in May, Bernanke noted that the economy still needs “highly accommodative monetary policy for the foreseeable future.”

Industry observers have interpreted this to mean that the Fed isn’t as anxious to reduce its support for the economy as many originally believed. If this interpretation does indeed play out, in turn, the pain to bank balance sheets could very well be less than predicted — at least for now.

The article Why Bank of America Stock Is Headed Higher originally appeared on Fool.com and is written by John Maxfield.

John Maxfield owns shares of Bank of America Corp (NYSE:BAC). The Motley Fool recommends Bank of America Corp (NYSE:BAC) and Wells Fargo. The Motley Fool owns shares of Bank of America Corp (NYSE:BAC), JPMorgan Chase, and Wells Fargo.

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

Page 2 of 2