|Bid||29.39 x 1800|
|Ask||29.40 x 1300|
|Day's Range||29.19 - 29.52|
|52 Week Range||22.66 - 31.20|
|Beta (3Y Monthly)||1.64|
|PE Ratio (TTM)||10.39|
|Earnings Date||Oct 16, 2019|
|Forward Dividend & Yield||0.72 (2.41%)|
|1y Target Est||33.19|
Cathy Bessant, chief operations and technology officer at Bank of America, shared her thoughts as the keynote speaker at the 2019 Charlotte CIO of the Year ORBIE Awards held at The Westin Charlotte on Friday morning.
Respected strategist and portfolio manager Bob Doll of Nuveen suggests ways for investors to post gains while overall stock market returns fall.
President Trump, who had a two-year head start, has raised more from the financial sector than Democratic top contenders Joe Biden, Bernie Sanders and Elizabeth Warren combined.
(Bloomberg Opinion) -- So divergent have their fortunes been since the financial crisis, European banks tend to trail their Wall Street peers on most of the metrics investors care about. Gender diversity at the top might be the next lagging indicator.There are rare bright spots in Europe. Royal Bank of Scotland Group Plc on Friday promoted Alison Rose to chief executive officer, the first woman to run a big U.K. lender. Spain’s Banco Santander SA is chaired by Ana Botin. Cast the net a bit wider and things start to look thin.With Rose’s appointment, RBS becomes truly one of a kind. Its finance director is also a woman, Katie Murray, which is another rarity in European banking.Although no woman has run a big Wall Street outfit, some American banks have made real strides in promoting women to top management positions. They will be well-placed to make the transition to CEO soon, possibly as soon as the next round of promotions.Take JPMorgan Chase & Co. Its CEO Jamie Dimon has seen several potential male successors depart during his reign. But the bank’s operating committee is now 50% female, with women in charge of consumer lending, the company’s finances and the asset management unit. At Bank of America Corp., 40% of the leadership team is female, including the chief operating and technology officer.The statistics aren’t as compelling at Citigroup Inc., where 31% of the leadership is female, nor at Goldman Sachs Group Inc., where it’s 29%. But the contrast with Europe’s titans is still striking.At Santander 23% of managers are women, at HSBC Holdings Plc it’s 13% and it’s 15% at BNP Paribas SA. At Barclays Plc just one of its 13 executive committee members is female, while at UBS Group AG the 13-strong management team is only now gaining two more female members, bringing the total to three.Beyond the general acceptance that businesses are nicer places to work when they’re more diverse, financial returns also improve markedly the less they’re dominated by white males with privileged backgrounds. Research from Morgan Stanley shows that shares in companies with a higher degree of gender diversity outperformed less diverse peers by 3.1% per year in the past eight years (2011-2019). The U.S. bank, whose own management team could do with acting on these findings, calculated diversity by using the number of female board members, executives, managers and employees, giving each an equal weighting.The bigger cost to banks could come from losing out on money from asset managers, who are increasingly demanding diversity at their holdings as part of a shift toward more carefully targeted investment.Indeed, the substantial growth of “environmental, social and governance” investments in recent years owes a great deal to finance industry leaders. As such, their own conduct should be beyond reproach. Falling behind on diversity may be another reason for investors to favor U.S. banks over their European peers. To contact the author of this story: Elisa Martinuzzi at firstname.lastname@example.orgTo contact the editor responsible for this story: James Boxell at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Elisa Martinuzzi is a Bloomberg Opinion columnist covering finance. She is a former managing editor for European finance at Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Fewer workers feel confident in managing money versus last year, even as employers ramp up efforts to provide more guidance, according to a new study.
State Street's (STT) dividend hike announcement is part of its 2019 capital plan. The approval of the plan by the Federal Reserve reflects the company's strong balance sheet position.
(Bloomberg) -- Signs that stress in U.S. funding markets is rebuilding ramped up pressure on the Federal Reserve to permanently increase reserves by boosting Treasury holdings, even as it was preparing a temporary liquidity injection for a fourth straight day.The New York Fed plans to do another $75 billion overnight repo operation on Friday. It follows liquidity doses of the same size Thursday and Wednesday, and $53.2 billion on Tuesday. The central bank is deploying this remedy for the first time in a decade.The Repo Market’s a Mess. (What’s the Repo Market?)This week’s actions have helped calm the funding market, with repo rates declining to more normal levels after soaring to 10% Tuesday, four times last week’s levels. However, swap spreads tumbled to record lows Thursday amid concern Fed policy makers haven’t announced more aggressive steps. Swaps are signaling less appetite for Treasuries, driven by concern traders won’t be able to fund purchases through the repo market.“The Fed needs to do at least double what they offered now and maybe even be more vigilant and do something even more significant,” said Thomas Simons, senior economist at Jefferies LLC. “This attitude of trying to kind-of fix the problem is not great.”There are others signs of investor apprehension about future funding levels, which is manifesting in different ways.Treasury bill sales on Thursday were met with a poor reception, as investors demanded to be compensated via higher yields for locking up cash. Meanwhile, in cross currency basis -- which show floating-rate payments in different currencies -- the premium for the Australian dollar over its U.S. counterpart collapsed by the most in eight years during Asian trading hours.So while overnight general collateral repurchase agreement rates have retreated, trading around 1.95% Friday, around Thursday’s levels, market participants say the Fed needs to reveal a permanent fix, rather than these ad-hoc overnight operations.“We expect these episodes of funding stresses to become more frequent with demand for funding and U.S. Treasury supply forecast to increase heading into year-end and the Fed’s reserve levels likely to drop further,” Jerome Schneider, head of short-term bond portfolios at Pacific Investment Management Co., wrote in a note Wednesday with his colleagues.The operations, once common before the 2008 financial crisis, temporarily add cash as the Fed takes government securities as collateral. Wall Street bond dealers submitted about $84 billion of securities for Thursday’s Fed action, the most in the three days.The latest addition of liquidity follows the Federal Open Market Committee’s move Wednesday to reduce the interest rate on excess reserves, or IOER, by more than their main interest rate, an attempt to quell money-market stresses.Given the added supply, banks’ holdings of Treasuries have risen and are increasingly being financed by money-market funds investing in repo, which leaves “U.S. funding markets more fragile,” Schneider wrote. He said this adds to other reasons why the Fed needs to do more to engineer a long-term fix.Cap BustedAfter policy makers wrapped up the two-day meeting Wednesday, Fed Chairman Jerome Powell said the central bank will keep doing these repo operations if that’s what it takes to get markets back on track. He spoke hours after the effective fed funds rate busted through the central bank’s cap.Powell also said the Fed would provide a sufficient supply of bank reserves so that frequent operations like the ones they’ve done this week aren’t required.The only way “to permanently alleviate the funding stress is to rebuild the buffer of reserves in the system,“ according to Morgan Stanley strategist Matthew Hornbach.Relying on repo operations doesn’t resolve the issue of reserves declining as the Treasury rebuilds balances, Hornbach wrote in a note. Having regular operations will also increase market uncertainty as the Fed could halt purchases at any time, while the size of its buying will have to expand over time as reserves drop, he said.“It is certainly possible that we’ll need to resume the organic growth of the balance sheet sooner than we thought,” Powell said, referring to the central bank potentially buying securities again to permanently increase reserves and ensure liquidity in the banking sector.Read: Fed Should Be Worried About ‘Collateral Damage,’ BofA SaysMany strategists had predicted the Fed would take even more aggressive measures to reduce the pressures. One idea that’s gotten a fair amount of attention is something called a standing fixed-rate repo facility -- a permanent way to ease funding pressures. Many analysts even predicted a Wednesday announcement that the Fed would start expanding its balance sheet.That didn’t happen. However, with the Fed apparently ready to keep injecting liquidity whenever it’s needed, “it’s enough for now,” said Jon Hill of BMO Capital Markets.“This week’s dramatic moves in the short-term funding markets serve as a case in point for the need to carefully consider liquidity in the financial system,” Rick Rieder, global chief investment officer of fixed income at BlackRock Inc., wrote in a note.“All of this funding market gyration points to the increasingly obvious fact that the end of Fed reserve draining is insufficient to stabilize these markets,” he said.(Updates with Friday repo levels.)\--With assistance from Edward Bolingbroke and Stephen Spratt.To contact the reporters on this story: Liz Capo McCormick in New York at firstname.lastname@example.org;Alexandra Harris in New York at email@example.comTo contact the editors responsible for this story: Benjamin Purvis at firstname.lastname@example.org, Nick Baker, Mark TannenbaumFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Bank of America (NYSE:BAC) stock has been benefiting from a huge rebound in bank stocks. BAC stock is up 15% over the past few weeks, while JPMorgan (NYSE:JPM), Citigroup (NYSE:C), Goldman Sachs (NYSE:GS) and others are also riding higher.Source: Andriy Blokhin / Shutterstock.com However, many of these names are running into potential resistance -- including Bank of America stock.That makes it a much harder buy than it was a few weeks ago, when it was sitting near support. Of course, it isn't just sentiment and broad-market action that's moving the banks. The banks are widely impacted by the gyrations in interest rates and how much money they can make as a result.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 8 Dividend Stocks to Buy for a Recession Over the last few weeks, various spreads between long- and short-dated bonds were widening, which aids in the banks' profitability. Therefore, BAC stock and others were on the move higher. Previously, tightening in these spreads -- such as the widely watched 10-year/2-year spread -- caused a brutal decline in many of these stocks.Up big so far this month, is BAC stock worth buying now? Trading BAC StockHopefully InvestorPlace readers are sitting on big gains in BAC stock. We flagged this name a few weeks ago as it sat on range support, and the rally from that point has been impressive. Now though, shares have gone from range support to range resistance. Click to EnlargeIn late July, BAC stock was on the cusp of a major breakout. Shares were consolidating between $30 and $30.50 and looked set to make a significant move higher. This followed solid earnings and a recent increase in capital returns.But then all the yield-curve worries came about, as bond prices surged and spreads collapsed. This was a jarring couple of days for the stock market in general and extra tough on the bank stocks.As you can see on the chart, Bank of America stock has been consolidating between $29.50 and $30, as traders eye BofA for a potential move into range resistance.From a trading perspective, getting the bounce from around $26.50 to $30+ is really all we need in order to justify exiting the position. For new longs or those looking for more upside though, this consolidation period is 100% necessary for a breakout to even be possible.Without it, BAC stock price would surely be rejected from the $30.50 to $30.80 area.Given the amount of false breakouts we've had in BAC stock, I eventually want to see a close above $31. That puts the 52-week high of $31.37 on the table and above that, a further rally can ensue.If BAC stock need more time and/or is rejected from range resistance, let's see if either the 20-day or 50-day moving average can support the stock. Below the 200-day and another test of range support is possible. Valuing Bank of America StockThe thing about the banks? They're quite cheap.Bank of America stock trades at roughly 10.5 times this year's earnings expectations. The bank is expected to post modest earnings growth this year and next year, with 8% growth in 2019 and 6.7% growth in 2020.Revenue is a different story though, with expectations within 10 basis points of flat for both this year and next year. Essentially, analysts predict that BAC will generate roughly the same amount of revenue in 2020 that it did in 2018. Not impressive.Some may argue that they like JPM and Citigroup more than BAC. After all, both have better yields, better revenue growth, better earnings growth this year and in the case of Citigroup, a lower valuation. Not that JPM's 11.6 times earnings should be considered expensive.And while that statement may look like a negative for BAC stock, it's not intended to. The three stocks all have low valuations and solid earnings growth projections. Further, BofA was approved for a buyback up to $30.9 billion and a 20% increase in its dividend. Shares now yield 2.4%, which is respectable in a low-rate environment, although less than the 3% and 2.9% investors can still get in JPM and C, respectively.At the end of the day, most of this group moves in tandem. If BAC is breaking out, it's likely C and JPM have the wind in their sails too. Keep this group on your radar, looking for a pullback or a breakout opportunity.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long BAC and C. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 8 Dividend Stocks to Buy for a Recession * 10 Companies Making Their CEOs Rich * The 7 Best S&P 500 Stocks of 2019 So Far The post How to Trade Bank of America Stock as It Approaches ResistanceÂ appeared first on InvestorPlace.
John Williams, president of the New York Fed, on Friday questioned the hesitance of the banks in an interview with the FT. “The thing we need to be focused on today is not so much the level of reserves [held at the Fed],” he said.
On Sept 18, the Federal Reserve cut interest rates by 25 basis. The expected move came amid concerns about trade wars and a potential economic slow down globally. Yet Fed officials were divided about the decision -- as well as over the need for any future cuts. Variables such as interest rates, economic growth, global political and trade worries and activity in the housing markets can impact a bank's stock price. Therefore, today I'd like to discuss the outlook for Bank of America (NYSE:BAC), one of the largest banks globally, and BAC stock.Source: Michael Vi / Shutterstock.com Right after the interest rate announcement, there was increased volatility in the equity markets. Initially, broader indices fell after the decision. Toward the close of trading, stocks rebounded. The recovery was led by banks and the big tech. Although I like BAC stock for a long-term diversified portfolio, I expect market volatility to continue for several more trading sessions.In case of further pullbacks in BAC stock in the coming days, investors may consider buying into Bank of America shares on the dip. Here's why.InvestorPlace - Stock Market News, Stock Advice & Trading Tips BAC Stock and the EconomyThe outlook given by Bank of America as well as CEOs of other major corporations in recent months shows that the economic or banking cycle in the U.S. isn't at its most attractive point. Our economy had fired on almost all cylinders for a number of years. Now it may be poised to glide onto a slower growth trajectory. * 7 CBD Stocks to Buy That Are Still Worth Your Investment Dollars Bank stocks are exposed to economic ebb and flow. If you are considering buying banking stocks, it'd be important to remember that two main factors affect a bank's revenue and earnings: * Interest rates: As interest rates increase, a bank can earn more money from its loan portfolio. * Economic activity outlook: In a robust economy, more money circulates through the system, fueling a bank's non-interest income.In short, if the U.S. economy cools down in the coming months, Bank of America stock is likely to be adversely affected. Despite the potential economic headwinds, it is not quite possible to know if or when we will enter a recession in the coming quarters. Interest Rates and Bank of America StockBank of America stock's income is divided into two main categories: net interest income (NII) and non-interest income.Like other banks, BAC stock earns income on loans and other interest-earning assets. It pays interest on deposits and other interest-bearing liabilities. We can arrive at the bank's net interest income by deducting interest paid from the total interest earned.In general, decreasing interest rates mean headwind for banks including Bank of America as lower interest rates put pressure on NII and margins.The low interest rate environment in the U.S. has indeed had negative impact on BAC stock's net interest income. On July 17, Bank of America released Q2 earnings. Although the bank still expects to see growth in the face of expected interest rate cuts and slower economy, management lowered its full-year guidance of NII.During the conference call, Chief Financial Officer Mr. Donofrio cut 2019 NII growth outlook to 2%, assuming interest rates stayed stable. He said that if the Fed were to cut interest rates twice in 2019, then the BAC's NII growth would be about 1%.Several of our readers may well remember that earlier in April, Bank of America had already cut its NII growth outlook to 3% in a stable interest rate environment. Since the release of Q2 earnings in July, we have had two Fed rate cuts, one in late July and one this week.At present, Fed's rate-hike cycle is over. However, we do not know if the central bank may cut rates further. One can even argue that we have some ambiguity over future Fed rate decisions. In other words, later in the year, if there is another rate cut, then BAC stock's earnings from loans could even suffer further. BAC Stock Has Attractive Valuation LevelsIn the U.S., the Bank of America serves about 66 million consumers and small business clients, giving the bank an attractive deposit base. It has over 4,350 retail financial centers and plans to increase that number in the coming quarters. The group's online and mobile banking operations are also growing fast, adding to increased fees charged for banking activities.Due to extensive expense-management measures over the past several years, Bank of America's efficiency ratio has improved (i.e., gone down). It now stands at 57.48%.A decrease in the ratio means that the bank has incurred lower costs to generate every dollar of income. For banks, the objective is to get the efficiency ratio as close to 50% as possible. This respectable overall number by BAC shows how effective management's cost-cutting initiatives have been.The efficiency ratio is calculated by dividing the BAC's non-interest expenses by its net revenue. Non-interest expenses may include personnel salaries and other related expenses, marketing costs, and real estate rent, etc.Furthermore, the trailing P/E ratio for BAC stock stands at an attractive 10.7. And value investors may be interested to know that its price-to-book (P/B) ratio is 1.14.P/B ratio is used widely to value for asset-heavy companies, such as banks or other financial institutions. In general, for banking stocks, a number below 2 could imply good long-term value. However, investors should due further due diligence by looking at other metrics, too. Where BAC Stock Price Is NowYear-to-date, Bank of America stock is up over 21%. However, over the past several months, BAC stock has been trading in a range, between about $26 and $31.BAC stock's 52-week range has been $31.37 (Sep. 21, 2018) and $22.66 (Dec. 24, 2018). In other words, we are at the anniversary of last year's highest level.The share price is now hovering around $30, where there is substantial resistance from a technical point of view. If Bank of America stock cannot go and stay over the 52-week high of $31.37 soon, there will likely be profit taking in the stock. Then, I'd expect the stock to fall toward $27.50 level, where it will find initial support.I would not advocate bottom-picking in case of near-term price weakness. Yet, I find Bank of America stock to be a buy candidate if the price declines toward $27.50 or even lower. If BAC shares can build up momentum, then investors are likely to push to price to a new high in the last quarter of the year. By the end of 2020, long-term investors may indeed see the price reach $34-$35.Meanwhile, BAC shareholders can also enjoy a dividend yield of about 2.4%. In Q2, the bank paid a dividend of 18 cents per share, representing a 20% increase over the prior-year quarter. Management also continues to buy back shares, which supports Bank of America stock price. * 8 Dividend Stocks to Buy for a Recession The Bottom Line on BAC StockIn the coming weeks, BAC stock, like many other stocks in the broader market, is likely to be impacted by the rhetoric of the U.S.-China trade wars as well as global growth worries. Therefore, I expect further volatility in the share price, especially until the next earnings expected to be released on Oct. 21. However, long-term investors may consider buying the dips in BAC shares.As of this writing, Tezcan Gecgil did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 8 Dividend Stocks to Buy for a Recession * 10 Companies Making Their CEOs Rich * The 7 Best S&P 500 Stocks of 2019 So Far The post Should Long-Term Investors Buy Bank of America Stock After the Rate Cut? appeared first on InvestorPlace.
The Fed seeks to remain focused on analyzing incoming economic data to determine future moves. Heathy domestic economy and several streamlining efforts are likely continue supporting bank stocks.
Bank of America today announced findings from its annual 2019 Workplace Benefits Report, which reveals that more than twice as many companies are offering workplace financial wellness programs to employees today compared to four years ago (53 percent today versus 24 percent in 2015). Now in its ninth edition, this report tracks the importance of benefit programs and uncovers an expanded set of opportunities for employers to improve their employees’ financial wellness. Majority of employees feel financially well: 55 percent of employees today rate their own financial wellness as good or excellent, down from 61 percent a year ago.
American workers in high-deductible health plans are embracing health savings accounts, a new survey shows, but their value as a potential retirement-savings vehicle is still largely untapped and not understood.
Shares of Bank of America (NYSE:BAC) are up 22% year-to-date, putting the stock ahead of the Financial Select Sector SPDR (NYSEARCA:XLF), the largest financial services exchange-traded fund, by about 220 basis points.Source: Andriy Blokhin / Shutterstock.com Impressively, Bank of America stocks is up nearly 11% this month. Prior to today's Federal Reserve rate cut announcement, an array of banks, including BAC, warned about the impact of lower interest rates on net interest margins during their second-quarter earnings calls. In fact, that issue was one of the primary takeaways from banks' most recent round of of earnings updates.Bank of America rivals, such as JPMorgan Chase (NYSE:JPM) and Wells Fargo (NYSE:WFC), are already complaining that lower interest rates are weighing on earnings. All that simply because of a mere eight-basis point squeeze (on average) in net interest margins.InvestorPlace - Stock Market News, Stock Advice & Trading TipsAs is the case with its competitors, lower rates are a real consideration with Bank of America. And they likely explain why analysts have recently grown bearish on the name. On Aug. 29, Raymond James lowered its rating on Bank of America stock to "market perform" from "outperform." A week later, Keefe, Bruyette & Woods did the same thing, while slashing its price target on BAC stock to $29 from $36. The shares closed just under $30 on Sept. 17."… in a falling rate environment where the yield curve remains inverted, we believe that creates an environment where it will be difficult for shares to outperform and a Market Perform is appropriate," said KBW's Brian Kleinhanzl. Dueling Views On BAC StockOther headwinds for Bank of America stock include speculation that the economy is slowing and the lingering U.S.-China trade war. Those two issues are joined at the hip. If the U.S. and China cannot come to terms on trade, both economies will suffer. If the U.S. economy languishes, lending will contract, putting further strain on the financial services sector.Additionally, the Fed is said to be "data dependent." This means that economic reports revealing a slowing economy, will prompt the central bank to step in, likely with lower interest rates. This would further suppress interest margins for money center banks. * 7 CBD Stocks to Buy That Are Still Worth Your Investment Dollars One area of good news is that, in recent weeks, President Donald Trump appeared eager to work with China on trade, even implying that a resolution could be realized over the near term.Another factor, albeit wider-ranging in nature, is the recent rotation out of growth stocks into value names. BAC stock is a value play. The S&P 500's Value Index allocates 21.8% of its weight to financial stocks, about 550 basis points more than the benchmark's second-largest sector allocation.At 9.9 times forward earnings and 1.1 times book value, BAC stocks fits the bill as a value name -- and one that could benefit from a lengthy growth-to-value rotation. The Bottom Line on Bank of America StockThe Fed has set the stage for banks to boost buybacks and dividends. Yielding just 2.4%, Bank of America stock has ample room for dividend growth.Additionally, BAC has enviable market positions across an array of pivotal financial services and products. According to Morningstar, Bank of America is racking up accolades in investment banking, credit cards and several other financial services.That gets investors to a compelling long-term story with short-term macro issues with Bank of America stock.As of this writing, Todd Shriber owns shares of XLF. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 CBD Stocks to Buy That Are Still Worth Your Investment Dollars * 5 Stocks to Buy With Great Charts * 5 Goldman Sachs Stocks to Buy with Over 20% Upside Potential The post Bank of America Burns Savers, But Investors May Like BAC Stock appeared first on InvestorPlace.
A new mixed-use development is getting started near Polaris Fashion Place, and it'll be anchored by a major banking player that's ramping up its Central Ohio presence. A joint venture of VanTrust Real Estate and NP Ltd. is breaking ground on a second phase for the Pointe at Polaris project along Lyra Drive. This project will include a 145,000-square-foot office building and a 260-unit apartment project.
Charlotte-based Bank of America Corp. is under investigation to determine whether it opened unauthorized customer accounts, according to information released on Tuesday by the Consumer Financial Protection Bureau.
In documents posted on its website Tuesday, the watchdog agency said it has sought information from the bank concerning account openings going back to March 2014.
As part of its 2019 capital plan, JPMorgan (JPM) announces a 12.5% dividend hike. One should take a look at its fundamentals and prospects before taking any investment decision.