Please ensure Javascript is enabled for purposes of website accessibility

Bank of America Rules the Day, Google Down Big at Night

By Anand Chokkavelu, CFA – Updated Apr 7, 2017 at 8:11PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Breaking down the market.

The market was up all around today:

 ChangeEnding Value
Dow Jones Industrial Average (INDEX: ^DJI)+46.24 [+0.37%]12,625.19
Nasdaq (INDEX: ^IXIC)+18.62 [+0.67%]2,788.33
S&P 500 (INDEX: ^GSPC)+6.46 [+0.49%]1,314.50

Lifting the markets was good news out of the banking sector, with Bank of America (NYSE: BAC) and Morgan Stanley both reporting favorable earnings before market open.

B of A became profitable on a full-year basis, but that was due to asset sales rather than operations. However, its lending showed strength and it seems to be executing well on its plan to become leaner and meaner. After popping around 5% initially, shares settled back to a 2.4% gain on the day, leading all Dow components.

Meanwhile, Morgan Stanley reported a loss, but one that wasn't as bad as analysts expected. It showed strength in its trading business and shares rose 5.4%.

The banks ruled the market during the day, but Google's (Nasdaq: GOOG) after-hours report is ruling the night. Finally disappointing analysts after two straight years of quarterly beats, Google's shares are down 9% as I write this. But investors should note that CEO Larry Page was actually "very happy with our results."  

How can Larry Page's opinion be so different than the market's gut response? Either he's wrong, he understands the numbers better, or he's keeping a longer-term view. Until convinced otherwise, I'll give him the benefit of the doubt that it's one of the latter two.

The daily news is fun to check out, but remember that these summaries are just a starting point. Dig in to the earnings of Bank of America or Google if you're intrigued.

And if you want to learn about the mobile space Google is helping to transform, read our new free report: “The Next Trillion-Dollar Revolution.” Just click here. It's free.

Anand Chokkavelu owns shares of and long-dated options on Bank of America. The Motley Fool owns shares of Bank of America and Google. Motley Fool newsletter services have recommended buying shares of Google. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insightsmakes us better investors. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Alphabet Inc. Stock Quote
Alphabet Inc.
GOOGL
$98.74 (-1.40%) $-1.40
Bank of America Corporation Stock Quote
Bank of America Corporation
BAC
$31.73 (-2.37%) $0.77
Dow Jones Industrial Average (Price Return) Stock Quote
Dow Jones Industrial Average (Price Return)
^DJI
$29,590.41 (-1.62%) $-486.27
NASDAQ Composite Index (Price Return) Stock Quote
NASDAQ Composite Index (Price Return)
^IXIC
$10,867.93 (-1.80%) $-198.88
S&P 500 Index - Price Return (USD) Stock Quote
S&P 500 Index - Price Return (USD)
^GSPC
$3,693.23 (-1.72%) $-64.76

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
339%
 
S&P 500 Returns
109%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 09/24/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.