Bank of America Lags Behind Peers in Early Morning Rallyhttp://www.fool.com/investing/general/2013/06/07/bank-of-america-lags-behind-peers-in-early-morning.aspx Jessica Alling
June 7, 2013
After a nice rally late in trading yesterday, Bank of America (NYSE: BAC) is one of the only bank stocks seeing red this morning. The bank opened 0.88% higher than yesterday's close, only to fall precipitously within the first half hour of trading. Since the other members of the Big Four and the banking sector overall don't seem to be providing the trend for Bank of America's moves so far this morning, should investors be worried about this lone wolf?
So why are bank stocks, with the exception of B of A, doing well in spite of this report? As we've seen in the past few weeks, speculation over the Fed's next move with its stimulus plan seems to be driving many of the reactions within the market to economic data. And since the labor market is really the key to deciphering any changes to the status quo, reactions to new labor data hit marketwide. Banks have been viewed as big beneficiaries of the monetary policy, allowing cheaper financing costs, etc. So with news that the labor market is not improving as the Fed would hope, there's less chance of changes in the near future -- leaving banks on the receiving end of positive QE3 benefits.