BAC - Bank of America Corporation

NYSE - NYSE Delayed Price. Currency in USD
24.60
+0.46 (+1.91%)
At close: 4:00PM EDT

24.66 +0.04 (0.16%)
After hours: 7:59PM EDT

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Previous Close24.14
Open24.76
Bid24.65 x 2900
Ask24.69 x 2900
Day's Range24.28 - 24.87
52 Week Range17.95 - 35.72
Volume54,991,042
Avg. Volume74,295,701
Market Cap213.42B
Beta (5Y Monthly)1.59
PE Ratio (TTM)10.00
EPS (TTM)2.46
Earnings DateJul. 16, 2020
Forward Dividend & Yield0.72 (2.98%)
Ex-Dividend DateJun. 04, 2020
1y Target Est28.53
  • Goldman Sachs Traders Shine, But Don't Expect a Repeat
    Bloomberg

    Goldman Sachs Traders Shine, But Don't Expect a Repeat

    (Bloomberg Opinion) -- Goldman Sachs Group Inc.’s bond traders came through in the clutch.The bank that’s synonymous with Wall Street has made no secret about its efforts in recent years to diversify its business to create more durable revenue and reduce sensitivity to financial market conditions. But the second quarter was no time to shy away from its roots, as earnings from JPMorgan Chase & Co. and Citigroup Inc. proved on Tuesday by delivering profits even after setting aside huge sums for loan losses. JPMorgan’s trading revenue in fixed-income, currencies and commodities rose in the second quarter by a whopping 120%,(1)while Citigroup’s jumped by 89%. In equities, JPMorgan posted a 38% increase while Citigroup had a modest drop.Needless to say, 120% is a high hurdle. But Goldman cleared it and then some, reporting on Wednesday that FICC trading revenue soared 149% relative to a year ago to $4.24 billion, the highest in nine years and far and away outpacing estimates for $2.64 billion. Even in equities, trading rose 46%, the division’s best performance in 11 years. Together, traders accounted for more than half of the bank’s revenue in the second quarter. That kind of profiting from market volatility, combined with a doubling in revenue from underwriting stocks and bonds, pushed net income higher than it was a year earlier — quite the surprise, given the global pandemic and economic recession.Then again, the swift and sharp turnaround in financial markets in April and May was also shocking, so perhaps it’s only natural that Goldman was in the best position to take advantage of Wall Street’s animal spirits while staying largely insulated from Main Street’s anxiety. Heading into this earnings season, its shares were only down about 10% in 2020, compared with declines of more than 30% for Bank of America Corp., Citigroup and JPMorgan (Morgan Stanley was down just 2.6%). On Tuesday, after the blockbuster quarters for bond traders at Citigroup and JPMorgan, it was Goldman shares that rallied 2.5%, more than any company in the S&P 500 bank index and the second most behind Berkshire Hathaway Inc. in the diversified financials sub-index. Shares extended their advance in pre-market trading.In one of the more colorful comments on second-quarter earnings so far, Octavio Marenzi, chief executive officer of Opimas, called Goldman’s results “almost indecent” and may lead to an outcry for the government to take steps that don’t directly boost investment-banking profits. Now, just because Goldman’s traders are clearly still talented at their jobs, and Wall Street trading businesses aren’t irreparably broken as some feared, doesn’t mean the bank should count on the second quarter becoming the norm. The S&P 500 Index staged one of its biggest rallies ever from its March lows but has since traded sideways for more than a month. Corporate-bond prices have trickled higher while the torrent of new deals has slowed considerably. The Federal Reserve used its shock-and-awe power to get markets to where they are today. There’s a good chance it’ll be a slog in the months ahead.JPMorgan CEO Jamie Dimon effectively said as much on Tuesday toward the end of a call with analysts. “For trading, because no one asked, cut it in half,” he said of projecting coming revenue based on its second-quarter results. “Cut it in half, and that’ll probably be closer to the future than if you say it’s still going to still be double what it normally runs.”Goldman’s leadership didn’t quite go that far. “I don’t think any of us are in a position to make such a declaratory judgment about the exact direction of trading revenues into the second half of the year,” Stephen Scherr, the bank’s chief financial officer, said during the earnings call in response to a question mentioning Dimon’s remarks. Earlier, he noted that Goldman “went to the market and didn’t pull back and away from the market, and in doing that we picked up market share, which I think will have lasting effect, notwithstanding where the market goes.” Market share is the holy grail of the banking industry, so investors were likely encouraged to hear that.Goldman CEO David Solomon also acknowledged during the call that this huge windfall probably can’t last. “The activity levels that we saw at the end of March and in April were really extraordinary — we’ve not seen the same level of activity over the course of the last five or six weeks, since the beginning of June. But I would say the activity levels over the last five or six weeks, when looked at compared to activity levels in 2019 or 2018, still look pretty active.”Solomon said in a statement that “the turbulence we have seen in recent months only reinforces our commitment to the strategy we outlined earlier this year to investors.” That likely refers to initiatives like its new U.S. transaction banking business, which takes deposits and provides escrow services, among other things, as well as its Marcus consumer bank and its joint effort with Apple Inc. on the Apple Card credit card.Meanwhile, Goldman’s provision for credit losses is $1.59 billion, a fraction of what its more consumer-facing competitors have had to set aside. While that figure is seven times what it was a year ago, due in part to higher write-downs in private credit and real estate, JPMorgan’s was nine times greater and Wells Fargo & Co.’s was almost 20 times. Of course, Goldman has its own unique troubles: Provisions for litigation and regulatory proceedings were $945 million in the quarter, up from $66 million a year ago, as it nears a settlement with regulators over its 1MDB scandal. To paraphrase the late football coach Dennis Green, Goldman and its legion of traders are who we thought they were. The bank proved it still dominates Wall Street during one of the most tumultuous periods for financial markets in recent memory. Frankly, if it didn’t blow away all expectations, that would have been something of a red flag.Solomon shouldn’t let one set of eye-popping numbers distract from the longer-term approach of getting a foothold in new lines of business. He’ll sing praises for his traders today — and rightfully so — but probably knows deep down that he can’t count on a repeat performance.(Adds remarks from Goldman Sachs executives in the eighth and ninth paragraphs.)(1) This excludes the gain from the Tradeweb initial public offering in 2019's second quarter.This 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/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Reuters

    US STOCKS-S&P 500 scales over 4-month peak on vaccine hopes, Goldman profit beat

    Wall Street gained on Wednesday with the S&P 500 hitting its highest in more than four months following a strong quarterly showing by Goldman Sachs and promising early data for a potential COVID-19 vaccine. Energy, industrials and materials led gains among the major S&P sectors. "We're being led by the cyclical investing which means people believe that the economy has reached a nadir and is going to start trending higher," said Robert Pavlik, senior portfolio manager at SlateStone Wealth LLC in New York.

  • Reuters

    US STOCKS-Wall Street rises on vaccine hopes, Goldman profit beat

    Wall Street gained on Wednesday with the S&P 500 nearing its highest in more than four months following a strong quarterly showing by Goldman Sachs and promising early data for a potential COVID-19 vaccine. Energy, industrials and financial stocks led gains among the major S&P sectors.

  • Reuters

    US STOCKS-Futures climb on vaccine hopes, Goldman's huge profit beat

    Futures linked to the S&P 500 and the Dow indexes hit near five-month highs on Wednesday as signs of progress in developing a COVID-19 vaccine and a much better-than-expected quarterly profit for Goldman Sachs brightened the mood. S&P 500 e-minis were up 45 points, or 1.41% and Nasdaq 100 e-minis were up 53.5 points, or 0.5%.

  • GoHealth Prices IPO Above Target at $21 a Share
    Bloomberg

    GoHealth Prices IPO Above Target at $21 a Share

    (Bloomberg) -- GoHealth Inc. expanded the size of its U.S. initial public offering and priced the shares above the marketed range to raise $914 million, according to people familiar with the matter.The Chicago-based health insurance company sold 43.5 million shares for $21 each, said the people, who asked not to be identified because the information wasn’t public yet. GoHealth had marketed 39.5 million shares for $18 to $20 each, according to its filings with the U.S. Securities and Exchange Commission.A representative for GoHealth didn’t immediately respond to requests for comment.The offering was led by Goldman Sachs Group Inc., Bank of America Corp.and Morgan Stanley. The shares are expected to begin trading Wednesday on the Nasdaq Global Market under the symbol GOCO.(Updates with amount raised in first paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Big US banks unwilling to call the economic bottom yet
    Yahoo Finance

    Big US banks unwilling to call the economic bottom yet

    Three of the largest U.S. banks reported Tuesday that their loan loss provisions had grown by almost $23 billion to over $81 billion, illustrating the pessimism over the economic path ahead.

  • Reuters

    In New York's Harlem, small businesses reel from coronavirus toll on Black communities

    Sylvia's, a soul food restaurant on Malcolm X Boulevard in Harlem, New York, saw a welcome bump in donations and revenue from new customers in early June following calls to "buy Black" after the death of George Floyd. The coronavirus pandemic has limited its operations, forcing the Harlem staple to lay off most of its staff and slash revenues. Owner Tren'ness Woods-Black welcomed the publicity but said she is more concerned about her core clientele, a devoted group of mostly Black patrons who used to dine at the restaurant every day.

  • Trading, Underwriting Businesses to Aid BofA (BAC) Q2 Earnings
    Zacks

    Trading, Underwriting Businesses to Aid BofA (BAC) Q2 Earnings

    A substantial rise in trading and underwriting activities is likely to support BofA's (BAC) Q2 results. Lower interest rates and significantly higher credit cost may have been headwinds.

  • Wells Fargo CEO: 'The length and severity of the economic downturn has deteriorated considerably'
    Reuters

    Wells Fargo CEO: 'The length and severity of the economic downturn has deteriorated considerably'

    The San Francisco-based bank also cut its dividend for the third quarter to 10 cents per share from 51 cents previously to reflect the U.S. Federal Reserve's recent curbs on bank dividends. Net interest income fell 18% from the prior period, as interest rates have fallen to near zero.

  • Buffett Has Gained $108 Billion on These 5 Stocks
    Motley Fool

    Buffett Has Gained $108 Billion on These 5 Stocks

    In recent years, Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) CEO Warren Buffett has taken a lot of criticism for underperforming the benchmark S&P 500. According to Berkshire Hathaway's 2019 shareholder letter, the broad-based S&P 500 has gained a cool 19,784%, including dividends paid, over the past 55 years. Comparatively, Berkshire Hathaway's per-share market gain has totaled (drum roll) 2,744,062% over the same period.

  • Big banks kick off earnings season on Tuesday — here’s what to expect
    Yahoo Finance Video

    Big banks kick off earnings season on Tuesday — here’s what to expect

    On Tuesday, three of the largest banks in the U.S. — JPMorgan Chase, Wells Fargo and Citi — kick off earnings season when they report their quarterly results. Moody’s Jeffrey Berg expects financials to report “varied, and in some instances, sharp declines in earnings” due to coronavirus and collapsing oil prices. Berg joins The Final Round to discuss what factors he’s focused on beyond the headline numbers.

  • Bank of America Declares Preferred Stock Dividends
    Business Wire

    Bank of America Declares Preferred Stock Dividends

    Bank of America Corporation today announced the Board of Directors has authorized regular cash dividends on the outstanding shares or depositary shares of the following series of preferred stock:

  • Emerging Markets Are Going to Pay the Price Again
    Bloomberg

    Emerging Markets Are Going to Pay the Price Again

    (Bloomberg Opinion) -- Judging by the performance of emerging markets, you’d hardly know the world was suffering from a deadly pandemic. After a horrible March, according to the Institute for International Finance, non-resident portfolio flows into emerging markets increased tenfold to $32.9 billion in June. MSCI’s EM currency index hit a one-month high last Thursday. Even currencies as weak as the South African rand are seeing a bit of a rally.Of course, that doesn’t mean things are going well in developing nations themselves. If anything, many of them face longer and more troublesome recoveries than was anticipated at the depth of the market panic in March. Earnings aren’t expected to recover anytime soon. Here in India, the ratio of price to one-year forward earnings for stocks in the Nifty50 index is the highest it has been for a decade.Behind this decoupling of markets and Main Street lies a familiar culprit: rich-world central banks. As they did after the 2008 financial crisis, the Federal Reserve, European Central Bank, Bank of England and Bank of Japan have pumped massive amounts of liquidity into their domestic markets. Those markets have rallied as intended and domestic investors, terrified at the prospect of missing out, have piled in. That in turn has forced institutional investors to search for yield in emerging markets.If the entire process is disconnected from reality, that’s by design. The very purpose of unconventional monetary policy is to impose irrationality on markets.Market insiders take this disconnect for granted; as Ajay Kumar of Bank of America Securities told Bloomberg TV, “sentiment and liquidity account for the bulk of your returns” at times like these. But the rest of the world doesn’t. And they’re right not to do so because, the last time this happened, emerging markets wound up badly damaged by the monetary policy of developed nations.Yes, the Fed and others have done well to reverse the near-catastrophic outflows of capital from emerging markets that were visible in the early weeks of the pandemic. Though it wasn’t their intent, their actions helped EMs raise, by early June, more than $83 billion on global bond markets.But, emerging markets should have learned by now that this is a poisoned chalice. Over the medium- and long-term, the West’s money printing will burden the developing world with volatility, instability, and subdued growth and investment.Consider India’s experience. In the years after 2008, the country enjoyed a sharp liquidity- and stimulus-driven rebound. But then commodity prices shot up. That increased inflation, drained foreign-exchange reserves and caused inflationary expectations to drift up unanchored.Asset-price inflation caused endless pain domestically; real estate prices, for example, shot up so high that the market is still not working properly. And, worst of all, cheap liquidity led to indiscriminate lending and a bad-loan crisis that has crippled Indian growth and investment.Nor were we masters of our own fate: In the infamous taper tantrum, a word from former Fed chairman Ben Bernanke drove the Indian rupee down to record lows. The Fed’s actions had political consequences as well, as voters took out their anger on the hapless incumbent government.Naturally, this process won’t unfold the same way twice. The driver won’t be oil prices this time, and perhaps not real estate. All we can say for certain is that something of the sort will indeed happen again. All that liquidity will have to settle somewhere and it will probably wind up flowing to whichever real asset is seen as being scarcest and most future-proofed on the margin. Rare earths, perhaps, in our new digital world?The fact that share prices and currency indices are so detached from reality is the surest sign that the process is underway. These are the first conduits through which the irrationality of central bank actions elsewhere begins to affect emerging economies. The MSCI index of EM equities has had a great quarter but remember, the last time it had such a good quarter was 2009.Inevitably, the combination of unrestrained liquidity and a crisis mentality will weaken already fragile governance structures in both financial markets and the real economy. Central banks in the West have been warned of this often. Raghuram Rajan, who as governor of the Reserve Bank of India had to deal with the consequences for India of unconventional monetary policy elsewhere, has constantly argued for setting “rules of the game” for central banks so that they don’t destabilize emerging markets.Rajan makes a simple, if under-appreciated point: “The bottom line is that simply because a policy is called monetary, unconventional or otherwise, it may not be beneficial on net for the world.” The failure to learn the lessons of the last stimulus may now doom emerging markets to another decade of subpar growth and political instability.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Mihir Sharma is a Bloomberg Opinion columnist. He was a columnist for the Indian Express and the Business Standard, and he is the author of “Restart: The Last Chance for the Indian Economy.”For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Earnings season kicks off with big banks, Netflix: What to know in the week ahead
    Yahoo Finance

    Earnings season kicks off with big banks, Netflix: What to know in the week ahead

    Market participants are bracing for the start of what will likely be the weakest corporate earnings season since the global financial crisis, as the coronavirus pandemic and measures to contain it hit business activity especially hard in the second quarter.

  • Reuters

    US STOCKS-Wall St jumps with financials; Gilead data offsets virus fears

    U.S. stocks rose on Friday as a positive analysis on Gilead Sciences Inc's antiviral drug to treat COVID-19 helped to soothe investor worries over a record rise in coronavirus cases in the United States, and as financial shares surged. The Nasdaq posted its sixth record closing high in seven days, but the index underperformed both the Dow and S&P 500, in a reversal of the recent trend.

  • US STOCKS-Wall St jumps as Gilead data offsets virus fears; financials jump
    Reuters

    US STOCKS-Wall St jumps as Gilead data offsets virus fears; financials jump

    U.S. stocks rose on Friday as a positive analysis on Gilead Sciences Inc's antiviral drug to treat COVID-19 helped to soothe investor worries over a record rise in coronavirus cases in the United States, and as financial shares surged. The Nasdaq posted its sixth record closing high in seven days, but the index underperformed both the Dow and S&P 500, in a reversal of the recent trend.

  • Big banks set for worst financial quarter since financial crisis
    Yahoo Finance Video

    Big banks set for worst financial quarter since financial crisis

    As big banks gear up for earnings season, many investors are anticipating the worst quarter for the banks since the financial crisis. Yahoo Finance’s Brian Cheung joins The Final Round panel to break down the details.

  • Reuters

    CORRECTED-US STOCKS-Wall St climbs as Gilead data offsets virus fears; Nasdaq hits another record high close

    U.S. stocks rose on Friday and the Nasdaq posted its sixth record closing high in seven days as a positive analysis on Gilead Sciences Inc's antiviral drug to treat COVID-19 soothed investor worries over a record rise in coronavirus cases in the United States. Gilead's remdesivir significantly improved clinical recovery and reduced the risk of death in COVID-19 patients, additional data from a late-stage study showed. Although the Nasdaq recorded another record closing high, it underperformed the Dow and S&P 500, in a reversal of the recent trend.

  • US STOCKS-Wall St gains as Gilead data offsets virus fears; Dow leads gains
    Reuters

    US STOCKS-Wall St gains as Gilead data offsets virus fears; Dow leads gains

    U.S. stocks rose on Friday as a positive update from Gilead Sciences Inc's antiviral drug to treat COVID-19 countered nerves over a record rise in coronavirus cases in the United States that threatens to further impact companies. In a reversal of the recent trend, the Dow and S&P 500 were sharply outperforming the Nasdaq, which on Thursday registered its fifth record closing high in six days. Bank of America Corp, Citigroup Inc, JPMorgan Chase & Co and Goldman Sachs rose ahead of their financial results next week, which would mark the onset of the second-quarter earnings season.

  • Reuters

    US STOCKS-S&P 500, Dow edge higher as Gilead data offsets virus concerns

    The S&P 500 and the Dow advanced on Friday as a positive update from Gilead's antiviral drug to treat COVID-19 countered nerves over a record rise in coronavirus cases in the United States that threatens to damage Corporate America. Gilead's remdesivir significantly improved clinical recovery and reduced the risk of death in COVID-19 patients, additional data from a late-stage study showed.