Bank of America Outgaining the Market

While the market is up less than 0.5%, Bank of America (NYSE: BAC  ) has been up as much as 2.2% in early trading this morning and is currently up just over 1%. With little news out of the bank itself, the bank's move could be driven by indications from Fed Chairman Ben Bernanke that the central bank will be maintaining its current stimulus efforts.

Other banks buoyed by testimony
Bernanke is testifying in front of Congress today, indicating that it is still too soon to end the Fed's current stimulus programs. In addition to Bank of America, the rest of the banking sector seems to be reacting favorably to the news:

  • Citigroup is up 1.06%, and is up 15.3% over the past 30 days.
  • JPMorgan Chase is up 2.32%, maintaining its momentum from yesterday.
  • Wells Fargo is currently up 0.29%, also continuing its positive movement from yesterday.
  • The KBW Bank Index (DJINDICES: ^BKX  ) , a broader measure of banks in the market, is up 0.88%.

More than just the testimony
Because of its strong presence in the mortgage industry, Bank of America could also be boosted slightly this morning on news from the National Association of Realtorsthat existing home sales are at their highest levels since November 2009. With 4.97 million homes sold -- a 9.7% increase over last April -- the housing market has almost returned to a healthy balance of supply and demand, and continuing gains could be helped by the Fed maintaining low interest rates.

Bank of America also announced yesterdayit had provided assistance to about 366,000 customers as part of the National Mortgage Settlement, totaling $29.2 billion in aggregate relief since the settlement was reached in March 2012. The bank further stated that it will continue to work with borrowers even after its settlement obligation is met, which should help even more eligible customers meet their mortgage obligations. This should further help clean up some of the problem mortgages that have been plaguing the bank for some time.

Bank of America's stock doubled in 2012. Is there more yet to come? With significant challenges still ahead, it's critical to have a solid understanding of this megabank before adding it to your portfolio. In The Motley Fool's premium research report on B of A, analysts Anand Chokkavelu, CFA, and Matt Koppenheffer, Financials bureau chief, lift the veil on the bank's operations, including detailing three reasons to buy and three reasons to sell. Click here now to claim your copy.


Read/Post Comments (0) | Recommend This Article (3)

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.

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: 2447028, ~/Articles/ArticleHandler.aspx, 11/27/2014 1:38:26 PM

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...


Advertisement