Why Bank of America Crushed the Market Today and Boeing Didn't

The Dow Jones Industrial Index (INDEX: ^DJI  ) jumped 0.9% when the Fed committed to buying $40 billion of mortgage debt a month until the job market bounces back. Federal interest rates will stay at today's record-level lows until at least 2015.

These actions are obviously great news for American banks. Bank of America (NYSE: BAC  ) jumped 3.5% on the news, JPMorgan Chase (NYSE: JPM  ) added 1.5%, and American Express (NYSE: AXP  ) took a 2% leap.

But the Fed's action goes far beyond just lifting the burden of troubled mortgage loans off the bankers' shoulders. Twenty-nine of the 30 Dow components are trading in positive territory today as I write this. That's a rare show of broad market health.

The lone laggard? Boeing (NYSE: BA  ) fell ever so slightly, trading down a modest 0.1% at the moment. The defense and aerospace giant is staring down a proposed merger between European rivals BAE Systems and European Aeronautic, Defence & Space. If approved, that deal would create a huge competitor that could leverage sheer economies of scale into fresh pressure on Boeing's largest contracts around the world.

Many investors left Bank of America for dead in 2011. The stock has roared back to a market-crushing 66% gain in 2012, but that's not the end of it. In a premium research report, our top financial-sector analysts lay out the case for Bank of America soaring even higher over the next few years. Read the report to learn about the three key areas you must watch, including reasons why you'd buy or sell the stock today. It even comes with a year of updates, so click here to claim your investing edge now.

Fool contributor Anders Bylund holds no position in any of the companies mentioned. Check out Anders' holdings and bio, or follow him on Twitter and Google+. The Motley Fool owns shares of Bank of America and JPMorgan Chase. Motley Fool newsletter services have recommended writing a covered strangle position in American Express. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinion, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.

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Related Tickers

10/25/2016 12:06 PM
^DJI $18176.77 Down -46.26 -0.25%
AXP $66.88 Down -0.21 -0.31%
American Express CAPS Rating: ****
BA $138.47 Up +1.02 +0.74%
Boeing CAPS Rating: ****
BAC $16.71 Down -0.06 -0.36%
Bank of America CAPS Rating: ****
JPM $68.68 Down -0.19 -0.28%
JPMorgan Chase CAPS Rating: ****