Can Investors Get Over Bank of America This Week?

The market is still in a bit of shock over Bank of America's suspension of its dividend and share buyback initiatives. It's also unhappy about JPMorgan Chase's latest bit of bad news. It's good, then, that Citigroup and Wells Fargo are about to open their tills for dividend payouts to shareholders.

May 5, 2014 at 12:00PM

This week the banking sector will still be recovering from the shell shock created by the bomb Bank of America (NYSE:BAC) dropped on the market last Monday. The big lender made errors in reporting certain capital figures, and said it was suspending its dividend and share buyback program as per a request from the Federal Reserve.  Bank of America stock dropped notably after that ugly piece of news, and has yet to fully recover. 

It's probably not the best time, then, to hold an annual shareholder meeting. But that's exactly what's going down on Wednesday morning,and since the announcement is still fresh Bank of America's confab might feature some very contentious moments. For those who want to witness the fun, it's being webcast live on the day.

Bank of America's lousy news allowed JPMorgan Chase (NYSE:JPM) to slip in its own unhappy revelation at the very end of last week. Friday night, the company said it expects its crucial markets (read: investment banking) revenue to decline by 20% on a year-over-year basis in the current Q2.

That follows the already-steep 18% tumble the firm recorded in its market and investor services segment in Q1. In that quarter, the segment's revenue came in at $5.9 billion. This was almost one-quarter of JPMorgan Chase's total top line, so a drop on the order of 20% is certainly going to hurt.

At least JPMorgan Chase currently pays a dividend, in contrast to stumbling Bank of America. Other dividends in the sector will be teed up over the next few days, specifically from Citigroup (NYSE:C) and Wells Fargo (NYSE:WFC). Both lenders have their record dates this week; Citi's is today, while that for Wells Fargo is Friday. The former is handing out its customary (since 2009, anyway) $0.01 per share, while Wells Fargo is dispensing $0.35, or $0.05 higher than its previous payout.

Zooming out a bit, Fed Chair Janet Yellen will take her latest turns in the spotlight. She's to make a pair of testimonies to Congress, the first to the Joint Economic Committee on Wednesday, and the second to the Senate Budget Committee the following day.  She'll get the usual quizzing about the continued wind-down of the regulator's quantitative easing, and general queries on the state of the economy. The Fed's policy of keeping interest rates skinny and eventually shuttering the current QE are quite clear these days, so we shouldn't expect anything too unexpected to fly from her mouth.

That would help to boost the confidence of the market. Particularly in the banking world, morale could use a lift after the Bank of America shocker and the JPMorgan Chase admission. Investors will be hoping for more positive news from the big lenders this week... or at least fewer stink bombs.

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Eric Volkman has no position in any stocks mentioned. The Motley Fool recommends Bank of America and Wells Fargo. The Motley Fool owns shares of Bank of America, Citigroup, JPMorgan Chase, and Wells Fargo and has the following options: short June 2014 $50 calls on Wells Fargo and short June 2014 $48 puts on Wells Fargo. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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