|Bid||26.44 x 27000|
|Ask||26.52 x 36200|
|Day's Range||26.26 - 27.22|
|52 Week Range||22.66 - 31.49|
|Beta (3Y Monthly)||1.57|
|PE Ratio (TTM)||9.42|
|Earnings Date||Oct 16, 2019|
|Forward Dividend & Yield||0.72 (2.65%)|
|1y Target Est||33.24|
The turbulence created by a slowing economy and inversion in yield curve has forced investors to look for safe stocks. These five stocks are sure winners.
Over the past year, there has been a lot of bullishness out there with respect to Bank of America (NYSE:BAC). Specifically, according to YCharts, BAC stock has consistently maintained a consensus "Buy" rating from Wall Street analysts over the past twelve months.Source: Shutterstock During that stretch, BAC has lost more than 10%, while the S&P 500 has gained about 2%. Clearly, the bull thesis has simply been wrong.It will continue to be wrong for the foreseeable future. The reality is that there are a plethora of fundamental risks in the financial sector at the present moment, the sum of which will challenge Bank of America's growth prospects for the foreseeable future and keep BAC depressed.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThese risks aren't anything new. They've been around for a while. That's why I've been pounding on the table to sell BAC over the past year (see here, here, here, and here). * 10 Marijuana Stocks That Could See 100% Gains, If Not More These risks also aren't going away anytime soon. That's why I continue to pound on the table to sell BAC stock today. The Headwinds Are Piling UpMy bear thesis on BAC stock over the past year has centered around the idea that the headwinds are piling up for this company, and they aren't going away anytime soon.Specifically, those headwinds are slowing global economic growth, persistently low interest rates, and an inverted yield curve. Over the past year, the U.S. and global economies have slowed. This slowdown has weighed on banking activity. As economic growth has slowed, rates have dropped substantially.Interest rates across the yield curve are now flirting with all-time lows, and that's not great for Bank of America's net interest income. Further, and perhaps most catastrophic, the yield curve has inverted, meaning that Bank of America's lending business will be handicapped for the foreseeable future.These headwinds aren't going away anytime soon.Global growth should stabilize over the next several quarters. But, until the trade war gets resolved, global growth won't improve meaningfully. Without a big rebound in growth, interest rates won't move meaningfully higher.Even if we do get a bounce-back in global growth and rates move somewhat higher, they won't move much higher because technology is a secular suppressant of inflation (and high rates).Meanwhile, the yield curve may "un-invert" if the Fed cuts rates aggressively. But, recent chatter out of the Fed doesn't seem to imply that everyone is on board with even one more rate cut - so even if the yield curve does normalize, it likely won't steepen to "normal" levels anytime soon.Net net, Bank of America is still staring at a plethora of headwinds that should fundamentally challenge operations over the next several quarters. The Valuation Is RichMy big problem with BAC over the past year has been that, despite the glaring aforementioned headwinds, the stock has been priced richly. This remains true today.BAC trades at over 1-times book value. The stock's five-year-average book multiple is about 0.9. Thus, despite the aforementioned headwinds, the stock trades at an above-average valuation today.That doesn't make much sense. But, it's been the case for the past year. BAC has consistently featured a price-to-book multiple of around 1. As it has, BAC hasn't gone anywhere.That's not a coincidence. So long as the headwinds here remain intense and the valuation remains full, Bank of America stock won't stage a sustainable move higher. Bottom Line on BAC StockBank of America stock has been on my "Sell" list for over a year now because the fundamentals haven't been great (slowing economic growth, low rates, and flat/inverted yield curve) and the valuation has remained full at roughly 1-times book value, versus a five-year-average book multiple of 0.9.Both of these dynamics remain in play today. The fundamentals remain weak. The valuation remains full. So long as these two dynamics remain in play, I'll keep BAC stock on my "Sell" list.As of this writing, Luke Lango did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Marijuana Stocks That Could See 100% Gains, If Not More * 11 Stocks Under $10 to Buy Now * 6 China Stocks to Buy on the Dip The post With These Headwinds, It's Long Past Time to Bail on BAC Stock appeared first on InvestorPlace.
Charlotte’s major uptown employers are still working through plans for the Republican National Convention week. A security perimeter around Spectrum Center will close off many uptown streets during the convention and traffic into all of uptown will likely be congested much of the week.
German banking fintech N26 is making a big push for the U.S. market, announcing a nationwide rollout in the U.S. Thursday after a two-month beta program the company called successful.
It took them a little while to believe it. But, after assessing what the minutes from the most recent Federal Reserve governors meeting said, investors decided the glass was half full. The S&P 500 ended Wednesday's action at 2924.43, up 0.82%, and in the middle of several moving average lines.Source: Shutterstock Target (NYSE:TGT), incredibly enough, led the charge, rallying more than 20% on the heels of an impressive second-quarter report. Same-store sales grew 3.4%, and e-commerce revenue was up 34%. That's a tremendous win for the retailer, which got a slow start on the digital sales front.Nordstrom (NYSE:JWN) knocked it out of the park too, rallying more than 5% in front of its post-close report, then adding more than 10% in response to its solid quarterly earnings figure. Although sales came up short of expectations, income of 90 cents per share easily topped expectations of only 77 cents.InvestorPlace - Stock Market News, Stock Advice & Trading TipsNot every name was a winner, though. Holding the market back more than most others was Cree (NASDAQ:CREE), and its 16% stumble. Although the chipmaker topped last quarter's sales and profit expectations, investors were horrified of its guidance for the quarter now underway.As Thursday's action gets going, however, it's the stock charts of News Corp (NASDAQ:NWSA), Bank of America (NYSE:BAC) and Philip Morris International (NYSE:PM) that are of the most interest. Philip Morris International (PM)A year ago, Philip Morris International was in real trouble. PM stock was not only trending lower, it plunged April and wasn't acting as if there was any interest in a recovery. Even once the bulls started to test the waters by October, they had the rug pulled out from underneath them. In one fell swoop in December, Philip Morris was deep into new 52-week territory. * 10 Marijuana Stocks That Could See 100% Gains, If Not More Things do seem to have taken a turn for the better in the meantime though. While it has been anything but a straight-line effort, the choppiness has also been net bullish. One more good 'umph' could push PM shares over the hump. Click to Enlarge• It started in March, but that effort buckled until it was renewed in July. That's when Philip Morris broke back above the falling resistance line plotted in red on the weekly chart.• It doesn't look like it on the daily chart, but it's there. All the moving average lines, and the stock itself, are converging to a point that could be setting up an explosive divergence.• Although the undertow is bullish, there's still a significant ceiling ahead. As marked on the weekly chart, in blue, the $92.86 level has capped a couple of rally efforts since late last year. News Corp (NWSA)A week and a half ago, News Corp shares jumped higher, pivoting out of a lull at a point exactly where support would be expected to be found. The move rekindled a big gain in June that shook shares out of a rut and possibly back into an uptrend.That move persisted for a couple more days, albeit at a slower pace, until finally a familiar technical ceiling stopped the effort cold. The subsequent pullback was quelled as well though, with the advance rekindled last week. Although the ceiling remains in place, the odds of punching through this effort improve every day. Click to Enlarge• The technical ceiling is around $14.40, plotted with a yellow line on both stock charts, where shares peaked in November and again earlier this month.• The daily chart of News Corp also makes clear that the white 200-day moving average line and now the blue 20-day moving average line are serving as support, ending selloffs.• As of yesterday, the gray 100-day moving average has moved above the 200-day line, and all four key moving average lines are sloped upward. The underlying momentum is undeniably bullish. Bank of America (BAC)Banks like Bank of America aren't in absolute dire straits, despite the recent rate cut. Though lower rates mean weaker profit margins on lending activity, the economy is reasonably healthy. Banks, including B of A, will be fine.That doesn't mean BAC stock is going to hold up against a near-term bear attack though. A well-established but sinking floor was met again last week, and though traders pushed up and off of it a little bit, it's still within reach of a break below that floor. And, the backdrop is less than encouraging. Click to Enlarge• The support in focus is marked with a red dashed line on both stock charts. It connects most of the major lows since the middle of last year, and is clearly moving lower.• It has been messy on this front since the beginning of the year, we're on the cusp of seeing shorter-term moving average lines slide below longer-term moving averages.• It's only evident on the weekly chart, but it's crystal clear there … there's growing volume behind the recent weakness. The Chaikin line has fallen below the zero level as of last week.As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can learn more about him at his website jamesbrumley.com, or follow him on Twitter, at @jbrumley. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Marijuana Stocks That Could See 100% Gains, If Not More * 11 Stocks Under $10 to Buy Now * 6 China Stocks to Buy on the Dip The post 3 Big Stock Charts for Thursday: Bank of America, News Corp and Philip Morris appeared first on InvestorPlace.
Bank of America Tower, the most recent office building to be added to Queen City's uptown skyline, is under contract to be sold to a REIT that has an eye toward expanding in the local market.
In early 2019, Bank of America Corp. said it planned to have at least 13 financial centers in the Pittsburgh region within two years. BofA (NYSE:BAC) will have 12 branches up and running by the end of November, said Brian Ludwick, Pittsburgh market president. BofA confirmed the following time table for the next five sites: Advanced centers, smaller than a traditional branch, are slated to debut in the South Hills at 5217 Clairton Blvd. and in Oakland at 3413 Forbes Ave. in September.
(Bloomberg Opinion) -- By all accounts, it was supposed to be a sleepy August for the U.S. corporate bond market. Three weeks ago, the thinking went something like this: Sure, the Federal Reserve would cut its benchmark lending rate on July 31, in what Chair Jerome Powell would call a “mid-cycle adjustment.” But Treasuries were already pricing in such a move on the short end. Further out on the curve, the 30-year yield was about 2.6%, still more than 50 basis points away from its all-time low. Ten-year yields were about 2%, which seemed like a comfortable range for both buyers and sellers. For company finance officers, it had the makings of a sellers’ market but one that would be around once summer drew to a close.Then things got crazy. The 30-year yield lurched lower by 8 basis points on Aug. 1, then 13 basis points on Aug. 5, then another 13 basis points on Aug. 12. After a one-day reprieve near its all-time low of 2.0882%, it cruised through that level, tumbling to as low as 1.914%. The rally was so intense that the U.S. Treasury Department made an unusual, unscheduled announcement that it was again exploring issuing 50- or 100-year bonds. Companies clearly felt they couldn’t afford to pass up this opportunity. In the first full week of August, CVS Health Corp., Humana Inc. and Welltower Inc. headlined $35 billion of debt sales among investment-grade firms, easily surpassing estimates. Then in the week through Aug. 16, more than $22 billion went through, including a rarely seen offering from Exxon Mobil to the tune of $7 billion. Market watchers expected that would just about wrap things up until after Labor Day on Sept. 2.Some finance officers had other ideas. 3M Co. borrowed $3.25 billion on Monday to help finance its acquisition of medical-products maker Acelity Inc. In total, issuers sold $6.65 billion of investment-grade debt on Aug. 19, already topping some predictions for $5 billion this week. Then on Tuesday, Bank of New York Mellon Corp. priced $1 billion at the lower end of its expected yield range, along with a handful of other borrowers with multimillion-dollar deals.All this is to say, companies are simple: They see staggering low yields, and they issue bonds. Investors, for their part, can’t get enough of them. The Bloomberg Barclays U.S. Corporate Bond Index has returned 13.3% so far in 2019. Over the past 12 months, the index is up 12.5%, compared with just 1.5% for the S&P 500 Index. The average spread on corporate bonds has widened to 122 basis points, from 107 basis points at the end of July, but that’s just because they couldn’t keep up with the relentless rally in Treasuries, not because of a lack of buyers. If Bank of America Corp. strategists led by Hans Mikkelsen are correct, the demand in credit markets has lasting power. They say the $16 trillion of negative-yielding debt globally has left investors — and particularly those outside the U.S. — with few alternatives besides purchasing companies’ debt. “There is a wall of new money being forced into the global corporate bond market,” they wrote on Aug. 16. “Given the near extinction of non-USD IG yield, foreign investors are forced to take more risk.”Of course, buying investment-grade bonds hardly qualifies as a speculative endeavor. Exxon Mobil, in fact, has the same credit rating as the U.S. government from both Moody’s Investors Service and S&P Global Ratings. On the other hand, Bloomberg News’s Jeannine Amodeo and Davide Scigliuzzo reported this week that three leveraged-loan sales that had been languishing in the U.S. market for weeks were pulled as investors sought higher-quality assets. Vewd Software became the fourth on Tuesday, scrapping a $125 million term loan due to market conditions. Leveraged loans, it should be noted, are floating-rate securities and so face weaker demand when the Fed appears poised to cut rates, as it does now. But for large, highly rated companies, their behavior in recent weeks is exactly what should be expected. Exxon Mobil issued 30-year bonds to yield 3.095%. In November, five-year Treasuries offered the same amount. 3M, rated a few steps below triple-A, priced 30-year debt to yield 3.37%, less than the going rate on long Treasury bonds just nine months ago. No matter how you slice it, they’re getting borrowing costs that seemed unthinkable around this time last year.Interestingly, these low yields should be encouraging governments to borrow more, too. I wrote last week that the bond markets were begging for infrastructure spending. However, it seems neither Germany nor the U.S. has any appetite for that sort of initiative. The German government is reportedly preparing fiscal stimulus that could be triggered by a deep recession, while President Donald Trump hasn’t ruled out a payroll tax cut to stave off any economic weakness.It’s certainly possible that U.S. yields will only fall further from here, and other companies can also borrow or refinance at rock-bottom interest rates. But the move in global bond markets in recent weeks could was extreme, to say the least. The weak demand for Germany’s 30-year bond auction on Wednesday, which offered a coupon of 0% at a yield of -0.11%, suggests there are at least some lines that investors won’t cross.For prudent companies, it was well worth delaying summer vacations to get their deals done.To contact the author of this story: Brian Chappatta at email@example.comTo contact the editor responsible for this story: Daniel Niemi at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Brian Chappatta is a Bloomberg Opinion columnist covering debt markets. He previously covered bonds for Bloomberg News. He is also a CFA charterholder.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Despite a challenging backdrop, Warren Buffett is adding bank stocks to his investment portfolio. Thus, investing in banks with strong fundamentals and prospects seem to be a wise decision.
Tottenham Hotspur Football Club plans to refinance about 400 million pounds ($485 million) of its stadium debt through bonds issued via a private placement arranged by Bank of America Merrill Lynch (BAML), according to a source familiar with the matter. The holding company of the English soccer club originally took out a 400 million pound five-year loan from BAML, Goldman Sachs and HSBC in 2017 to finance the construction of its new 62,062-seat stadium. BAML declined to comment and the soccer club was not immediately reachable for comment.
Investing.com – Wall Street rose on Wednesday after positive earnings from Lowe’s (NYSE:LOW) and Target (NYSE:TGT) helped boost confidence over the economic health of U.S. consumers.
Bank of America plans to open another Greater Cincinnati branch as part of its retail expansion in the market.
The Sacramento mortgage market is getting more competitive, with steady growth in the number of lenders over the past five years.
Corporate America is responsible for providing economic benefits to all, not just its investors, the Business Roundtable group said on Monday. It comes amid calls for greater corporate responsibility from Democratic candidates for president and employee activists who want companies to take stances on issues outside of the corporate sphere. The chairman of the Business Roundtable, JPMorgan CEO Jamie Dimon, said there is a growing wealth gap in the United States, and prioritizing all stakeholders will lead to a healthier economy.
When folks think of the Berkshire Hathaway (BRK.B) portfolio and its collection of holdings, most of which were selected by Chairman and CEO Warren Buffett, the companies that most readily come to mind are probably American Express (AXP), Coca-Cola (KO) and, more recently, Apple (AAPL).But a deep dive into Berkshire Hathaway's equity holdings reveals a more complicated picture.Berkshire Hathaway held positions in 47 separate stocks as of June 30, according to the most recent regulatory filing (Aug. 14) with the Securities and Exchange Commission - down from 48 in the first quarter of this year, as he dumped USG Corp. (USG). But the portfolio of "Buffett stocks" isn't as diversified as the number might suggest. In some cases, BRK.B holds more than one share class in the same company. Some holdings are so small as to be immaterial leftovers from earlier bets the Oracle of Omaha has yet to completely exit.And perhaps most importantly, Berkshire Hathaway's equity portfolio is actually pretty concentrated. The top six holdings account for almost 70% of the portfolio's total value. The top 10 positions comprise 80%. Banks and airlines, to cite a couple of sectors, carry quite a load in this portfolio. Then there's the fact that several Buffett stocks actually were picked by portfolio managers Todd Combs and Ted Weschler.Here, we examine each and every holding to give investors a better understanding of the entire Berkshire Hathaway portfolio. SEE ALSO: 50 Top Stocks That Billionaires Love
(Bloomberg) -- JPMorgan Chase & Co. plans to host a conference call on Tuesday to help clients make sense of markets after a week of wild swings for stocks and bonds.“In the wake of a rather violent decline in yields, inversion of the curve, and volatility in equity markets, we consider the role of poor liquidity and systematic flows in exacerbating these market moves,” JPMorgan strategists led by Marko Kolanovic wrote in an invitation to clients obtained by Bloomberg. A spokeswoman for the lender confirmed the event.The meeting comes after U.S. equities suffered one of the deepest sell-offs of the year on Aug. 14 and a key portion of the U.S. Treasury yield curve inverted for the first time in 12 years, stoking fears of a recession. President Donald Trump held a conference call that day with the chief executive officers of JPMorgan, Bank of America Corp. and Citigroup Inc.Kolanovic and strategist Munier Salem plan to address the bout of unusual illiquidity in U.S. equities and discuss the extent to which high-frequency trading is to blame for drops in market depth, according to the invitation. Joshua Younger, a fixed-income strategist, will lead a discussion on convexity hedging in rate markets.The bank said last week that measures of market depth in U.S. equities, Treasuries and currencies relative to the rest of the year have fallen below the average since 2010 -- a sign that market players don’t have as much capacity to absorb the trade-driven trends sweeping assets.Some Wall Street trading desks have warned that the sudden rupture of volatility could cause quant-driven funds to dump billions of dollars of stocks.(Adds conference call with president in third paragraph.)To contact the reporter on this story: Michelle F. Davis in New York at email@example.comTo contact the editors responsible for this story: Michael J. Moore at firstname.lastname@example.org, Josh Friedman, Linus ChuaFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.