SUPERNEWS - NYSE:BAC (Bank of America Corporation) Stock Price, News, Quote, History

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Intraday: Fed Speculation Swings Stocks: BAC Down, ITCI Soars

AI Stocks Present High Returns and Risks; BAC and TTD Offer Safer Investment Opportunities

Morgan Stanley advises caution in AI stock investments, highlighting "adopters" for lower risk and a 0.8% retail sales drop signals consumer caution.

3/18, 15:40 EDT

Big Banks Face Earnings Test After Rally: What's Next?

<img src="https://cdn.tickerbell.ai/article/img/14bb4d45a779-4a4b-b14f-6cd737ccb31b.png" alt="article-main-img" class="article-img" /> ## Key Takeaway ```U.S. bank stocks, including JPMorgan (JPM), Bank of America (BAC), Citigroup (C), and Wells Fargo (WFC), face high expectations for their earnings reports after a 23% rally last quarter, with investors focused on net interest income and loan growth. Citigroup anticipates a $1.7 billion FDIC fund replenishment cost, while Bank of America expects a $1.6 billion charge related to the same issue.``` ## Bank Stocks Rally After Best Quarter Since 2021 - A gauge of US bank stocks gained 23% last quarter, outperforming the broader market. - Banks were under pressure for much of 2023 but surged in late October as confidence grew that the Federal Reserve would end its rate-hike campaign without triggering a recession. ## Expectations for High-Stakes Earnings Showdown - JPMorgan Chase & Co., Bank of America Corp., Citigroup Inc., and Wells Fargo & Co. are set to kick off the reporting cycle for Corporate America after their best quarter since 2021. - Investors will scrutinize what the timing of policy easing means for all corners of the lenders' business, from loan portfolios to deposit rates. ## Analysts' Views on Bank Stocks - Richard Ramsden, an analyst at Goldman Sachs Group Inc., believes that banks are not as cheap as they were but also thinks that valuations are not stretched. - If banks report upbeat results around net interest income, loan growth, capital markets, and deposit pricing, it could lead to greater earnings and further relative outperformance from some banks. ## Market Sentiment and Investment Perspective - The tide turned for bank shares last quarter due to optimism about Fed rate cuts in 2024 easing concerns over areas such as net interest margins. - Some analysts advise investors to temper their enthusiasm due to impending credit cycles and wild swings in sentiment. Hedge funds have been selling financial sector stocks over the past four weeks. - Despite this cautionary outlook, financial companies are the only sector where most analyst earnings revisions have been upwards over the past month. David Bianco at DWS Group maintains an overweight position on big banks like JPMorgan, Bank of America, Citigroup, and Wells Fargo due to their robust profitability. ## STREET VIEWS - Richard Ramsden, Analyst at Goldman Sachs Group Inc.: > “Banks are obviously not as cheap as they were, but at the same time I don’t think people believe the valuations of banks are stretched.” - David Bianco, CIO for the Americas at DWS Group: > “Most big bank stocks saw a strong year-end rally that was fueled by optimism that they wouldn’t suffer a major hit to their profitability since the recession risks have greatly diminished.” <div style="display: flex; flex-direction: row;" class="divbox"> <a style="display: flex; flex-direction: row;" class="MuiButtonBase-root wallstreet-review-item" href="https://www.bloomberg.com/news/articles/2024-01-11/biggest-bank-stock-rally-since-2021-raises-bar-for-earnings" target="_blank" rel="noopener noreferrer"> <div style="font-family: monospace; display: flex; ">  [1]  </div> <span> Biggest Bank-Stock Rally Since 2021 Raises Bar for Earnings    </span> <span class="MuiTouchRipple-root"></span> </a> </div><div style="display: flex; flex-direction: row;" class="divbox"> <a style="display: flex; flex-direction: row;" class="MuiButtonBase-root wallstreet-review-item" href="https://www.bloomberg.com/news/articles/2024-01-11/citigroup-c-earnings-preview-fraser-starts-year-of-cuts-restructuring" target="_blank" rel="noopener noreferrer"> <div style="font-family: monospace; display: flex; ">  [2]  </div> <span> Citigroup’s Jane Fraser Embarks on Another Pivotal Year of Bank Cuts    </span> <span class="MuiTouchRipple-root"></span> </a> </div><div style="display: flex; flex-direction: row;" class="divbox"> <a style="display: flex; flex-direction: row;" class="MuiButtonBase-root wallstreet-review-item" href="https://www.ft.com/content/7836d8b7-c9b4-4d4e-950d-f50a394265e2" target="_blank" rel="noopener noreferrer"> <div style="font-family: monospace; display: flex; ">  [3]  </div> <span> Investors warn of ‘complacency’ over junk bond risks    </span> <span class="MuiTouchRipple-root"></span> </a> </div>

1/11, 12:30 EST

BoA Beats Q1 Expectations, Bond Losses at $109B Amid Rate Hikes

BofA surpasses earnings expectations but faces $109 billion bond portfolio losses amid rising rates.

4/16, 22:06 EDT

BofA Earnings Watch: High Rates Impact, NII Falls to $13.8B

BofA navigates high interest rates, reporting a 10% profit increase to $7.8 billion and surpassing Wall Street forecasts.

4/15, 22:08 EDT

Intraday: Fed Speculation Swings Stocks: BAC Down, ITCI Soars

4/16, 10:40 EDT

AI Stocks Present High Returns and Risks; BAC and TTD Offer Safer Investment Opportunities

3/18, 15:40 EDT

Big Banks Face Earnings Test After Rally: What's Next?

1/11, 12:30 EST

BAC News

BofA Bullish on Munis, Barclays Wary Amid $156B Surge

15 hours ago

Bank of America Warns: Short Trades May Cut S&P Returns by 23K%

16 hours ago

Riksbank's Cut to 3.75% Aids Swedish Builders, Skanska to JM

5/10, 06:39 EDT

Zeekr IPO Raises $441M, Backed by Industry Giants

5/9, 16:04 EDT

$64B Debt Issued in 72Hrs: Record Rush Amid Rate Uncertainty

5/9, 11:40 EDT

BFF Bank Falls 10%, Dividends Halted by Italy's Bank Probe

5/9, 11:29 EDT

BGFIBank Eyes IPO, Aims for Image Reboot After Leak

5/9, 07:14 EDT

Equities Beat Inflation, Diversification Key Amid Uncertainty

5/9, 00:10 EDT

JPMorgan, Nomura Cut Ties with Segantii Amid Trading Case

5/8, 14:47 EDT

Hasbro's First Bond Sale in 4 Years Amid 20% Staff Cut, Market Surge

5/8, 12:44 EDT

JPMorgan Endorses Cullen/Frost, Sees 32% Stock Rise

5/8, 11:19 EDT

BoA: Skip "Sell in May", Eye 7.3% Election Year Rally

5/8, 07:10 EDT

Novelis Targets $1.2B NYSE IPO by September

5/8, 04:54 EDT

Australia Banks to Return $3.3B to Shareholders Amid Mortgage Wars

5/7, 20:23 EDT

Citi, BofA, Goldman Bullish on Tech & Retail, CVS Faces Downgrade

5/7, 09:25 EDT

Strategists' Pessimism Sparks Bullish Signals for Stocks

5/7, 09:22 EDT

Segantii Faces Insider Trading, Banks Reassess Ties

5/7, 00:37 EDT

JPMorgan's May Picks: Caterpillar, BoA, TJX with High Ratings

5/6, 10:51 EDT

Boutique Banks Win Big with 21% Surge in Advisory Fees Amid High Rates

5/6, 06:20 EDT

Ex-Merrill Banker in HK Insider Case, Career Moves Thwarted

5/3, 14:56 EDT

Etihad's $1B IPO Enlists Major Banks, Aims for Gulf Lead

5/3, 12:34 EDT

Junk Bonds Mimic Blue-Chip with 48% at High-Grade Levels

5/3, 11:45 EDT

CFRA Targets $472 for Berkshire B, Eyes 18% Upside

5/3, 11:19 EDT

Top Analyst Calls: Apple Up, Estee Lauder Down, More Shifts

5/3, 08:58 EDT

BofA Warns <125K Jobs Added Could Trigger Stocks Selloff

5/3, 04:14 EDT

BofA's Subramanian Sees 8% S&P 500 Rise by 2024 on Growth

5/2, 15:35 EDT

Nasdaq Eyes Monday Options for ETFs Amid 0DTE Demand Surge

5/2, 14:29 EDT

BoA: Buy Crocs Before Earnings, Targets $150, 21.4% Rise

5/2, 08:53 EDT

Seritage Sells Albany Mall Section for $28M, Heidenberg Buys

5/1, 14:25 EDT

Banks Offload $1.1B Loans to Ease Capital, Rates May Rise

5/1, 13:09 EDT

Wall Street Views

Aquila Investment Management

David Schiffman, 5/9/24

Neutral on

BAC

CVS

HAS

“In terms of volatility in the market, there’s still a lot of uncertainty not just related to what the Fed may or not do. There’s a lot going on overseas with geopolitical risk. Issuers may be concerned about that as well.”

Bank of America Corp

Murad Khaled, 5/9/24

Cautiously Optimistic on

BAC

CVS

HAS

“There is an emerging confidence in the market around the sectors and credits which are better positioned to deal with higher-for-longer, because investors now have 18 months of performance data within a generationally high rate environment to work with.”

Bank of America Corp.

Oleg Melentyev, 5/3/24

Neutral on

BAC

“Since there is little material evidence of such weakness so far, the market is comfortable trading big swaths of HY at IG levels.”

Bank of America Corp.

Michael Hartnett, 5/3/24

Neutral on

BAC

“A weaker jobs report would be a stagflation signal, raising the odds of a selloff in stock markets... If the Labor Department’s report on Friday were to show the US added fewer than 125,000 jobs in April, and the average hourly earnings rose more than 0.4% from the previous month, that would be a 'stagflation risk-off print.'”

Bank of America

Savita Subramanian, 5/3/24

Bullish on

BAC

“A sturdy economy would sustain the bull-market run in US stocks.”