Why Bank of America Is Climbing Higher Today
After a big day yesterday, Bank of America is up again today: 0.60% in the first hour of trading, after being down 0.37% overnight. Thank a perfectly virtuous circle of market and sector support for yesterday's performance, and say a prayer to the market gods that it continues today.
Big-bank and market roundup
Speaking of which, here's a quick look at what B of A's peers and the markets are doing right now:
- Citigroup is up 0.96%.
- JPMorgan Chase is up 0.60%.
- After opening down, Wells is now up 0.01%.
In the markets:
- The broader S&P 500 is down 0.07%.
- The narrower Dow Jones Industrial Average is also down, by 0.05%.
- And the Nasdaq Composite is down by 0.02%.
Foolish bottom line
Yesterday, the S&P closed at a record high 1650.34. The Dow hit record intraday highs. It was a bull day in the markets, and they carried the banks along with them. Or was it the other way around?
Citi was up 2.4%, and hit a 12-month high. JPMorgan rose 1.3%, and Goldman Sachs jumped 3.3%. B of A climbed 2.7%. It was a big day for the banks and the markets: a perfectly virtuous circle of mutual support.
And that's likely what you have to chalk yesterday's movements up to, and today's, as well: a rising tide lifting all boats.
There's not much going on for B of A in particular right now. All of the attention is focused on JPMorgan and the upcoming proxy vote to split the roles of COB and CEO there. Maybe B of A investors are just happy the name of their favorite bank isn't JPMorgan, and that its CEO isn't named Jamie Dimon.
Investors are very used to seeing B of A in the headlines for lawsuits and regulatory actions. It must be a relief to have some of the pressure off for a while. But always remember that day-to-day, week-to-week, or even month-to-month stock moves aren't what Foolish investing is about.
Here at The Motley Fool, we stress taking a long-term view: Obsessive ticker checking can lead to more trades, which costs you money. Focus on the fundamentals of the companies you're invested in, and check in on your share prices once a month, or even once a quarter. In the end, your portfolio will thank you, even if your broker won't.
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The article Why Bank of America Is Climbing Higher Today originally appeared on Fool.com.Fool contributor John Grgurichowns shares of Goldman Sachs, Citigroup and JPMorgan Chase. Follow John's dispatches from the bleeding heart of capitalism on Twitter @TMFGrgurich. The Motley Fool recommends Goldman Sachs and 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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