Bank of America (BAC) Stock Rises Notably
The share price of global financial institution Bank of America Corporation (BAC: Charts, News) gained significantly on Tuesday after the U.S. stock market was closed on Monday for the Memorial Day Holiday. The major U.S. bank's stock gapped up at the market open to $7.28 from Friday's $7.15 close and then ended the day at $7.44, showing a close to close gain of $0.29 or 4.1 percent on lower than average trading volume of 156.7 million shares on the New York Stock Exchange.
The stock has been rising correctively in recent sessions since finding a base at the $6.72 level on May 21st. Analysts attributed at least part of today's notable rise in (BAC
) to general strength in the U.S. stock market after weaker U.S. data indicated that additional financial stimulus was increasingly likely. In particular, the Conference Board indicated that U.S. consumer confidence fell in May for the third consecutive month to a disappointing 64.9 versus the market consensus of 69.8. Last month's 69.2 result was also revised downward to 68.7. Also, the broader stock market was supported by news that China's state council seemed ready to implement additional tax reforms in order to boost the country's economy. A Greek poll that showed greater popular commitment to the Euro also provided support, despite the Euro falling below the key $1.2500 level on Spain's credit downgrade by the Egan-Jones ratings agency. Daily Chart
Charlotte, North Carolina based Bank of American Corporation operates in over 40 countries around the world, providing individuals and businesses with a comprehensive range of products and services related to banking, investment and asset management. Within the United States, the financial institution serves roughly 57 million customers at 5,700 retail offices. The bank also operates 17,750 ATMs and offers an online banking website that boasts 30 million frequent users. In recent years, the bank has been laying off employees in a widespread attempt to cut costs in the wake of the devastating 2008 financial crisis. The financial firm has also suffered considerably from its purchase of beleaguered home lender Countrywide, and only managed to inch past the Federal Reserve's most recent bank stress test. Furthermore, on April 19th, Bank of America reported its first quarter net income gained to $3.7 billion, or $0.31 per diluted share, excluding one-time items. This was a rise of 40 percent versus the $2.6 billion and $0.23 earnings per share results the bank reported for last year's first quarter, and it trounced the $0.13 consensus of 22 market analysts surveyed by Zacks Investment Research. With that noted, the bank's unadjusted net income was only $653 million or $0.03 per share, largely as a result of substantial charges from narrowing credit spreads. Bank of America's Q1 revenues less interest costs came in at $22.5 billion, including a negative $4.8 billion valuation adjustment. Bank of America Corporation announced on May 24th that it will be reporting its financial results for the second quarter of 2012 on Wednesday July 18th at 7 a.m. Eastern Time. The announcement will be followed by a presentation for investors at 8:30 a.m. Other News About BAC Hagens Berman: Two Bank of America Fraud Whistleblowers Settle Claims, Including Former LandSafe/Countrywide Employee Who Earned $14 Million Reward
Former BoA employees settle fraud claims with the bank. Bank of America to Report Second-Quarter Financial Results on July 18
BoA announced its Q2 reporting date and investor presentation. Other Stocks in the News Pronova Wins Heart-Drug Patent Case Against Teva, Par Pharma
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Published on May 30, 2012
By Jay Hawk