Why Bank of America Is Booming Today
Having ended the day yesterday at a share price of $11.13 -- up 0.91% -- Bank of America is having an even better day today: up a solid 1.52% at about midday, and so far performing above and beyond not just the market, but most of its peers. What's driving this happy day for B of A investors?
The tale of the tickers
Here's where the market and the rest of the big banks are shaking out so far today:
- JPMorgan Chase is up a big 2.79%, the best so far in our grouping.
- Citigroup is feeling the investor love, as well: up 1.43% on the day.
- Even Wells Fargo has made it past the break-even point, up 0.13%.
With the S&P 500 up 1%, the Dow Jones Industrial Average up 0.94%, and the Nasdaq up a full 1.06%, clearly the market is happy today, too.
Gentle, soothing Ben
Is that all it is, then? A happy market lifting all boats? It's very possible.
After minutes from the Federal Reserve's Open Market Committee revealed last week that members were having second thoughts about continuing QE3 -- the Fed's third round of quantitative easing, a program of asset purchases designed to continue somewhat open-endedly and boost the economy -- investors have been nervous, wondering how committed the Fed is to economic recovery.
But with Ben Bernanke's testimony yesterday to the Senate banking committee that the Fed remains committed to QE3, investors of all stripes might be rejoicing -- and hence investing -- more than they have been of late: giving not just B of A a boost but everyone else, as well.
Please remember, however, that whether your favorite stock is up or down on the day, the week, or even the month, as a Foolish investor, you're in it for the long haul. That slow-but-steady upward rise that we all like to see is frequently punctuated by jagged, short-term ups and downs that can throw us all into the occasional tizzy.
"Get rich slowly." That's one of my favorite Motley Fool investing mottos, and keeps me focused on the long term when the short term is looking dicey. So long as the companies you're invested in have solid fundamentals, and you believe in them, don't worry. Your money is in the right place.
Want to learn more about the most talked about bank in the country? Check out our in-depth report on B of A, written by Anand Chokkavelu -- The Motley Fool's senior Financials sector analyst and Bank of America specialist. He'll analyze the superbank's prospects, and give you three reasons to buy and three reasons to sell. For immediate access, just click here.
The article Why Bank of America Is Booming Today originally appeared on Fool.com.Fool contributor John Grgurichowns shares of JPMorgan Chase. Follow John's dispatches from the bleeding heart of capitalism on Twitter @TMFGrgurich.The Motley Fool recommends Wells Fargo. The Motley Fool owns shares of Bank of America, Citigroup, JPMorgan Chase, and Wells Fargo. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a simply cracking disclosure policy.
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