The move capped a tough year for the banking giant, with the stock losing 17% in 2018 to trail the market's 6% drop. Image source: Getty Images. So what Like its peer financial giants, Bank of America was hit especially hard in December by a spike in investor concerns about a potential global growth slowdown.
Full Answer
What did Bank of America's Q2 earnings beat expectations?
Before markets opened today, Bank of America reported second-quarter earnings of $1.03 per share, besting the $0.77 consensus, on revenue of $21.5 billion that was slightly under the $21.83 billion expectation.
Will December be the worst for the stock market in history?
The vast majority of losses have come since October, when the stock market, which was experiencing the longest bull run in history, took a turn for the worst. The stock market is on pace for its worst December since 1931, but it also set record single-day gains Wednesday, when the Dow jumped by more than 1,000 points.
Is Bank of America's worst lending problem over?
Executives think the worst is over in terms of interest spread and lending. Bank of America ( NYSE:BAC) delivered second-quarter earnings today that came in ahead of expectations, but investors were more focused on faltering loan growth. As a result, the stock traded down as much as 5% on Wednesday.
What caused the stock market to crash in 2018?
6 factors that fueled the stock market dive in 2018 Tariffs driving uncertainty. The Trump administration’s tariffs on imported aluminum, steel, and other goods have... The Federal Reserve and interest rate hikes. The Federal Reserve raised interest rates four times this year. Earlier... Big tech ...
Why did the stock market drop in late 2018?
The S&P 500 in December 2018 fell more than 9% as investors feared a central bank ready to tighten monetary policy, a slowing economy, and an intensifying trade war between the U.S. and China. It marked the worst December since 1931.
Is Bank of America a good stock to buy now?
Summary. Interest rates are rising, yet Bank of America stock is still cheap. The stock trades at just 10x forward earnings. The rising interest rate environment may lead to a sustained increase in net interest yields.
Why do stocks go down in December?
Analysts generally attribute this rally to an increase in buying, which follows the drop in price that typically happens in December when investors, engaging in tax-loss harvesting to offset realized capital gains, prompt a sell-off.
Was 2018 a bear market?
The next downturn during the financial crisis lasted about 18 months from peak to trough. Then came two near-bear markets, a decline of 19.4% in 2011 that lasted five months and 19.8% in 2018 that lasted three months. And finally, the most recent bear market in 2020 lasted just 33 days.
Is Bank of America a good stock for 2021?
Bank of America is poised to benefit from the rising interest rate environment. The company also has strong loan growth prospects. The stock is trading at 13.32x FY22 EPS estimate and 11.41x FY23 EPS estimate and I believe it is a good buy at the current level.
What do analysts say about Bank of America?
Stock Price Forecast The 24 analysts offering 12-month price forecasts for Bank of America Corp have a median target of 44.50, with a high estimate of 66.00 and a low estimate of 33.25. The median estimate represents a +42.81% increase from the last price of 31.16.
Is December historically a good month for stocks?
So, in terms of seasonality, the end of December has shown to be a good time to buy small caps or value stocks, to be poised for the rise early in the next month.
Do stocks drop before Christmas?
The stock market can be affected by having extra days off for Thanksgiving or Christmas. The markets tend to see increased trading activity and higher returns the day before a holiday or a long weekend, a phenomenon known as the holiday effect or the weekend effect.
Is now a good time to invest 2022?
Reasons to Feel Cautious About the Stock Market in 2022: Rising interest rates – In an effort to fight inflation, the Federal Reserve started raising interest rates in early 2022—and there could be more rate hikes on the way soon. While this could slow down inflation, it could also trigger another U.S. recession.
What caused the 2018 bear market?
The Bottom Line The most recent bear market was the result of a global health crisis compounded by fear, which initially triggered a wave of layoffs, corporate shutdowns, and financial disruptions.
Are we in a bear market now 2022?
June 14, 2022, at 12:52 p.m. NEW YORK (AP) — Wall Street is back in the claws of a bear market as worries about inflation and higher interest rates overwhelm investors. The Federal Reserve has signaled it will aggressively raise interest rates to try to control inflation, which is the highest in decades.
What is the largest drop in stock market history?
Largest point changes The largest point drop in history occurred on March 16, 2020, when concerns over the ongoing COVID-19 pandemic engulfed the market, dropping the Dow Jones Industrial Average 2,997 points.
Investors are worried about economic growth trends, but they'll soon get more clarity on the issue
Demitri covers consumer goods and media companies for Fool.com, as well as broader moves in the economy. Follow @tmfsigma
What happened
Bank of America ( NYSE:BAC) shareholders trailed the market last month as the stock shed 13% versus a 9% drop in the S&P 500, according to data provided by S&P Global Market Intelligence.
So what
Like its peer financial giants, Bank of America was hit especially hard in December by a spike in investor concerns about a potential global growth slowdown. Such a downturn, if it happens, would hurt banking businesses directly and immediately as demand for loans declines, to name just one example.
Now what
Fortunately, investors won't have to wait long for more clarity on economic growth. All of the major financial giants are set to post fourth-quarter earnings reports in the coming weeks, with Bank of America scheduled before the market opens on Wednesday, Jan. 16.
NYSE: BAC
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What happened
Bank of America ( BAC -2.63% ) delivered second-quarter earnings today that came in ahead of expectations, but investors were more focused on faltering loan growth. As a result, the stock traded down as much as 5% on Wednesday.
So what
Before markets opened today, Bank of America reported second-quarter earnings of $1.03 per share, besting the $0.77 consensus, on revenue of $21.5 billion that was slightly under the $21.83 billion expectation.
Now what
Bank officials on the post-earnings conference call said they believe they are nearing a turning point for loan growth, and the company expects to see net interest income move higher as the year goes on. But with interest rates hovering near lows, it is difficult for banks to rev up the profit machine, leading to sluggish earnings.
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What happened
Bank of America (NYSE: BAC) delivered second-quarter earnings today that came in ahead of expectations, but investors were more focused on faltering loan growth. As a result, the stock traded down as much as 5% on Wednesday.
So what
Before markets opened today, Bank of America reported second-quarter earnings of $1.03 per share, besting the $0.77 consensus, on revenue of $21.5 billion that was slightly under the $21.83 billion expectation.
Now what
Bank officials on the post-earnings conference call said they believe they are nearing a turning point for loan growth, and the company expects to see net interest income move higher as the year goes on. But with interest rates hovering near lows, it is difficult for banks to rev up the profit machine, leading to sluggish earnings.
