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.

Why Bank of America Corp (BAC) Will Skyrocket Today

It’s early in the trading week, but it is apparent that the banking sector is still gleaming from the decent jobs report last Friday, which revealed that nearly 200,000 new jobs were added to the economy in June. Though the report was far from perfect, the unexpected increase in employment gave rise to a Wall Street cheer that buoyed the stocks of Bank of America Corp (NYSE:BAC), Citigroup Inc (NYSE:C)JPMorgan Chase & Co. (NYSE:JPM), and Wells Fargo & Co (NYSE:WFC) — as well as the Dow and S&P 500.

Bank of America Corp (NYSE:BAC)

All of the above are still aglow by mid-morning, with Bank of America Corp (NYSE:BAC) up nearly 1% so far. I feel sure that the residual good feelings regarding the employment report will linger throughout the day, keep the banking sector safely in the green. Despite the fact that the happy news could cause another spike in mortgage rates, which would likely affect Wells Fargo & Co (NYSE:WFC), JPMorgan Chase & Co. (NYSE:JPM), and Bank of America Corp (NYSE:BAC), positivity will probably reign, at least for today.

The hiatus is over: Article 77 hearing continues
Another issue that could catapult Bank of America Corp (NYSE:BAC) higher today is the resumption of the Article 77 hearing in Manhattan, where the fate of a $8.5 billion settlement between the big bank and 22 institutional investors hangs in the balance. Despite the suggestion of the judge presiding over the case, and the desire of settlement objectors, no talks ensued regarding this matter during the nearly one-month haitus.

As I mentioned in an earlier article, Bank of America Corp (NYSE:BAC) was dead-set against negotiating with American International Group Inc (NYSE:AIG) and other objectors, which looked a little like they were begging for scraps. American International Group Inc (NYSE:AIG), which refused to sit in on talks regarding this issue two years ago, was unable to sway Bank of America, which apparently feels that it will prevail in keeping the agreed-upon settlement amount intact. Do investors feel the same? I’m betting they do, and it will show in the bank’s share price — beginning today.

As Bank of America Corp (NYSE:BAC) surges ahead, investors have cause to celebrate. At the same time, however, it is important to remember that outside influences such as the jobs report can have a fleeting effect on a bank’s stock price. As Foolish, long-term investors, we recognize the fact that one-day changes in share price don’t make or break an investment. Even stocks have good days and bad days, so it’s important to realize that sometimes they’re not portents of dire news, but merely squiggles we can safely ignore.

The article 2 Big Reasons Bank of America Will Skyrocket Today originally appeared on and is written by Amanda Alix.

Fool contributor Amanda Alix has no position in any stocks mentioned. The Motley Fool recommends American International Group (NYSE:AIG), Bank of America, and Wells Fargo. The Motley Fool owns shares of American International Group, Bank of America, Citigroup, JPMorgan Chase, and Wells Fargo and (NYSE:WFC) has the following options: Long Jan 2014 $25 Calls on American International Group.

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

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.