Bank of America (BAC) suspended its dividend increase and share buyback plan after it discovered an error in data relating to its 2009 purchase of Merrill Lynch. The mistake was in data BofA sent to the Federal Reserve as part of a stress test. The data made it appear the company had $4 billion more than it actually does. This comes after Federal Finance Housing Authority is reportedly seeking a multi-billion dollar settlement related to selling mortgage securities.
Two pieces of economic data were released this morning. The S&P Case-Shiller Housing Price Index of 20 cities showed home prices grew 0.8% in February, the same as the previous month. The Consumer Confidence Index was at 82.3 in April compared to a revised 83.9 in March. This data comes after Pending Home Sales for March was released yesterday, showing they rose 3.4% after nine straight months of decline.
Several companies have withdrawn or suspended their sponsorship of the Los Angeles Clippers after racist statements allegedly made by team owner Donald Sterling. CarMax (KMX), Virgin America, and Mercedes-Benz are among the companies ending their sponsorships of the basketball team. Meanwhile, State Farm, Kia Motors America, Sprint (S) and Corona suspended their sponsorships. The NBA said it is investigating the incident and will have a news conference later today to discuss developments in the case.
There will be more fees for airline passengers. Frontier Airlines passengers will now have to pay extra to place carry-on bags in the overhead bin or for advance seat assignments. The overhead fees range from $20-$50. Advanced seat assignments range from $3-$8. Frontier already charges passengers $15-$20 for their first checked bag. While the company will add these fees, Frontier said it will lower its base fare by an average of 12%.
One stock the Yahoo Finance team will be watching today is Twitter (TWTR) ahead of its earnings report after the close today. Analysts expect the social media company to report a $0.03 loss on $240 million of revenue for the first quarter. Investors expect the company to report strong ad revenue growth but want to see expansion in their user base. As of yesterday’s close, Twitter shares are down nearly 40%. It’s not the only social media in free fall this year. Facebook (FB) is off 22% from its peak. Linkedin (LNKD) is down 36% from its highs earlier this year.
Which brings us to today’s poll: Are social media stocks a thing of the past or is now a good buying opportunity? Vote in our poll and leave a comment below.