News By Tag
News By Location
BAC stocks: Is it rising back up, or just prepping for another fall
The Bank of America is a company was originally a bank established to help Italian immigrants, under the name Bank of America and Italy in 1922.
It offers financial services and multinational investments, being the second largest US banking institution and world's eighth largest bank. The company's financial services focus on wealth management, investment banking and commercial banking.
Recently, the Bank of America posted their Q2 earnings report, overwhelming estimates with earnings per share of $1.03 compared to the expected $0.77 consensus. The revenue, though, went under with $21.5 billion which is slightly lower compared to the $21.83 billion Wall Street estimate.
This revenue is also lower compared to the $22.8 billion revenue for Q1 and also 3.6% lower if we look at the year-over-year basis. Because of this, the stocks fell down by almost 5% on July 14 of this year, which is another drop right after the stock just started to climb back up.
Financial institutions are having a rough time recently due to the falling interest rate and the current setup made by the government to keep everything afloat. The government programs allowed the consumers to have cash on hand, resulting to the loss of consumer loans by about 12%. The interest rate dropping is another thing, with the net interest income lowering by 6%.
However, with the latest trend on the market and the resurgence of the interest rates back to somewhat acceptable levels, the stocks of financial institutions are starting to rise. BAC stocks have risen almost 5% in the last two sessions, and it is being further fuelled by the positive earnings per share that the company released.
With the Federal Reserve hinting the accommodating policies are nearing their end, the Bank of America is bound to break out of the shackles that had been dragging it down. Bank officials have a very positive outlook for the direction of the company as well as the stocks, so much that they are looking forward for the aggressive economic recovery.
For more latest news in US Stock Market, you may also visit us at Millennium Capital Management (Hong Kong) Limited through our website https://millennium-
Millennium Capital Management (Hong Kong) Limited