Reasons Bank of America Is Trading Higher Today

  Reasons Bank of America Is Trading Higher Today The Giant Bank and (like this one) the rest of the market rebounded after a rough week.

What happened

Bank of America BAC (NYSE) $41,69 +1,55 (+%3,86) and Citigroup C (NYSE) $70,88 +2,64 (+%3,87) traded nearly 4% higher in the final hour of trading on Thursday, as the broader market recovered after a tough few weeks.

So what

Bank stocks were also hit hard by the news about China Evergrande Group (OTC:EGRN.F) and concerns over developments in the Chinese real estate market. The news affected long-term Treasury yields, causing them to fall as bank profits were closely tied to these returns. However, a recent Bloomberg article clarified that large US banks are not at risk of making direct loans to Evergrande.

The Giant Bank and (like this one) the rest of the market rebounded after a rough week.

Beating the KBW Bank Index, which tracks big bank stocks like Bank of America and Citigroup It even surpassed its giant peers JPMorgan Chase (NYSE:JPM) and Wells Fargo (NYSE:WFC).

Now what

For no apparent reason, Bank of America and Citibank dropped harder than their peers earlier in the week, perhaps justifying their bigger moves on Thursday. Because Bank of America's business model is different from the others, it can provide itself with more volatile movements. That's why Bank of America is gaining in importance.  

Source: The Motley Fool

 

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