Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Why Bank of America Boomed This Week

There's little doubt it was a banner week for Bank of America (NYSE: BAC  ) . Two and half hours into the last day of trading, the share price is up 3.64% over the last five days. With nothing unusual going on with the bank itself, can all of this be chalked up to the so-called Tepper rally?

Big banks and market roundup
Before we dive into that bunny hole, here's a quick look at what B of A's peers were up to this week:

  • Citigroup (NYSE: C  ) is up a whopping 5.94%.
  • JPMorgan Chase (NYSE: JPM  ) is up an even more whopping 6.28%.
  • Even the normally slower-moving Wells Fargo is up a big 4.58%.

And here's a quick glance at the week's activity for the market's three major indices:

  • The broader S&P 500 is up 1.70%.
  • The narrower Dow Jones Industrial Average is up 1.36%.
  • And the Nasdaq Composite is up 1.43%.

Thanks for the shout-out, Mr. Tepper
The Tepper rally is named after David Tepper: president and founder of the enormously successful hedge fund, Appaloosa Management. On Tuesday, he called out Citi and JPMorgan as bank stocks he was bullish on. As you can see from the numbers above, share prices for both shot up, and the rest of the Big Four may have simply come along for the ride.

Of course, it was a big week for the markets overall. With the S&P 500 hitting another record high, Wall Street is firing on all cylinders. Even suggestions from San Francisco Federal Reserve Governor John Williams that the central bank could begin winding down its monthly bond-buying this year hasn't much affected bullish sentiment.

And I think it's always a happy week for B of A investors when there's no breaking news of regulatory action or crisis-related settlements: B of A investors must be positively tickled that JPMorgan and CEO Jamie Dimon are currently in the media spotlight, and therefore taking some of the heat off of B of A.

But always remember that most of the short-term moves in your favorite stocks can be chalked up to market noise: things that have little to do with what's going on at a particular company. If the markets are up, chances are your stocks are going to be up. If the markets are down, chances are your stocks will be down.

This is why we at The Motley Fool emphasize a long-term view toward investing: Tune out the market noise and tune into the fundamentals of the companies you hold positions in. Excessive ticker checking can lead to excessive trading, which costs money and can hurt your portfolio's performance in the long run. Check in on share prices once a month, or even once a quarter, and leave the obsessive ticker checking to the day traders. Your portfolio will thank you, even if your broker won't. 

Looking for in-depth analysis on Bank of America?
Look no further than this Motley Fool premium report -- expertly researched and written by top Motley Fool banking analysts Anand Chokkavelu and Matt Koppenheffer. They'll help you lift the veil on the bank's operations, and give you three reasons to buy and three reasons to sell along the way. And with included quarterly updates, this could literally be the last investment research on B of A you'll ever need. For immediate access, simply click here now

Read/Post Comments (0) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2438387, ~/Articles/ArticleHandler.aspx, 9/30/2016 1:21:26 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 4 hours ago Sponsored by:
DOW 18,143.45 -195.79 -1.07%
S&P 500 2,151.13 -20.24 -0.93%
NASD 5,269.15 -49.39 -0.93%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/29/2016 4:01 PM
BAC $15.16 Down -0.22 -1.43%
Bank of America CAPS Rating: ****
C $45.80 Down -1.07 -2.28%
Citigroup CAPS Rating: ***
JPM $65.65 Down -1.06 -1.59%
JPMorgan Chase CAPS Rating: ****
WFC $44.37 Down -0.94 -2.07%
Wells Fargo CAPS Rating: ****