Big Banks Get Frisky With a Little Help From Bank of America

Don't let it get away!

Keep track of the stocks that matter to you.

Help yourself with the Fool's FREE and easy new watchlist service today.

The Dow Jones Industrial Average (DJINDICES: ^DJI  ) certainly looks spiffier this morning that it did yesterday, as markets await a rash of Federal Reserve speakers and banks soar right along with shooting star Bank of America (NYSE: BAC  ) .

With a dearth of economic news hitting the wires Friday, markets seem happy to wait to hear what a handful of Federal Reserve officials have to say as the day wears on. Philadelphia Fed chief Charles Plosser is speaking regarding the inevitable higher interest rate environment the U.S. will experience this year. Richmond Fed President Jeffrey Lacker will discuss the economic outlook at 1 p.m. today.

Federal Reserve Governor Jeremy Stein will give an afternoon speech, while outgoing Fed Chairman Ben Bernanke will talk on "The Changing Federal Reserve: Past, Present and Future," in Philadelphia at 2:30 p.m.

Unfortunately, December motor vehicle sales were a bit of a disappointment, causing the Dow to shed some of its morning gains. General Motors announced a dip in sales of 6% from November, although Ford saw a 2% rise and Chrysler reported an uptick in sales of 5.7%.

Bank of America's gains spread good cheer
With the Dow up by seven points by late morning, banks are still feeling pretty peppy. Goldman Sachs and JPMorgan Chase (NYSE: JPM  ) are up by 0.50% and 0.64%, respectively, despite news that the Federal Housing Finance Agency last year squeezed almost $8 billion out of the big banks on behalf of Fannie Mae and Freddie Mac over crummy mortgage securities sold during the heady pre-financial crisis era.

Once again, JPMorgan has made news regarding insider-trading shenanigans. The Financial Industry Regulatory Authority has banned a former JPMorgan broker from the brokerage industry for passing on insider information to another broker in a $9 million trading plot. The former broker, David Gutman, may face disciplinary action, as well.

Absent any spectacular news regarding big banks, it seems likely that Bank of America's skyrocketing fortunes may be rubbing off on its brethren. After making great strides following a stellar report from Citigroup analysts yesterday, BofA has built on that momentum – adding another 1.8% to its share price shortly before the noon hour. This puts the big bank well above the $16 per share mark, something it hasn't seen since May 2010.

Stocks you'll want to hang onto for the long haul

As every savvy investor knows, Warren Buffett didn't make billions by betting on half-baked stocks. He isolated his best few ideas, bet big, and rode them to riches, hardly ever selling. You deserve the same. That's why our CEO, legendary investor Tom Gardner, has permitted us to reveal The Motley Fool's 3 Stocks to Own Forever. These picks are free today! Just click here now to uncover the three companies we love. 

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

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: 2782484, ~/Articles/ArticleHandler.aspx, 8/28/2015 6:37:20 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...

Amanda Alix

Foolish financial writer since early 2012, striving to demystify the intriguing field of finance -- which, contrary to popular opinion, is truly what makes the world go 'round.

Today's Market

updated Moments ago Sponsored by:
DOW 16,643.01 -11.76 -0.07%
S&P 500 1,988.87 1.21 0.06%
NASD 4,828.33 15.62 0.32%

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

8/28/2015 4:55 PM
^DJI $16643.01 Down -11.76 -0.07%
BAC $16.36 Down -0.08 -0.49%
Bank of America CAPS Rating: ****
JPM $64.13 Down -0.35 -0.54%
JPMorgan Chase & C… CAPS Rating: ****
C $53.28 Down -0.16 -0.30%
Citigroup Inc CAPS Rating: ***
F $13.74 Up +0.18 +1.33%
Ford CAPS Rating: ****
GM $29.00 Up +0.42 +1.47%
General Motors CAPS Rating: ***
GS $187.75 Down -0.81 -0.43%
Goldman Sachs CAPS Rating: ***