Closed my position in BAC today ahead of the Yellen speech, as all indications were that there would be no rate hike in June like previously suggested. I'll look for a pull-back and a possible reentry.
No, it does not. I'm not familiar enough with them, and am just sticking with trading equities at the moment. I would like to get a much better feel of the market before spending time learning more about Calls/Puts.
Not good for the jobs report but good for the margins Report: Bank of America plans more job cuts Bank of America is expected to reduce staffing in its consumer banking division by as many as 8,000 more jobs. The nation's largest retail bank by deposits has already reduced the staffing in its consumer division from more than 100,000 in 2009 to about 68,400 as of the end of the first quarter of 2016, said Thong Nguyen, Bank of America's president of retail banking and co-head of consumer banking at the Morgan Stanley Financials Conference Tuesday. http://www.usatoday.com/money/
What’s at stake for BofA, Wells in today’s ‘stress tests’ results Bank of America and Wells Fargo will learn Thursday whether the Federal Reserve deems them financially strong enough to withstand another recession. More than 30 of the nation’s biggest financial institutions are set to receive results of their latest “stress tests,” a key tool in the Fed’s efforts to prevent another 2008-style financial crisis. Conducted annually, the exams run banks through hypothetical downturn scenarios to see if their capital levels would remain high enough for the firms to continue operating. Findings are scheduled to be announced around 4:30 p.m. http://www.charlotteobserver.com/news/business/banking/bank-watch-blog/article85380277.html
As Financials rally today on a possible Brexit vote to stay. Besides a future rate hike(s) there is one other possible catalyst that could happen after the bell today.That would be the stress test. They have spent many million $ to pass the test this time around. If passed it should add to the uptrend providing the Brexit vote goes well, There also could be a increase in Divi's for us longs.
Even though the Fed will not make a decision until next week it looks like the street is upbeat in AH on on 4,436,593 shares traded on the dip from the 14.30's Bank of America Exceeds Fed Minimum Capital Level Under Stress Scenario Bank of America Corp. has the capital to keep lending in a severe economic downturn, the Federal Reserve calculated Thursday in the first stage of its annual stress tests. At the low point of a hypothetical recession, Bank of America’s common equity Tier 1 ratio, which is a measure of high-quality capital as a share of risk-weighted assets, was 8.1%, exceeding the 4.5% level the Fed views as a minimum, the central bank estimated. Bank of America’s Tier 1 leverage ratio, which measures high-quality capital as a share of all assets, was 6.4%, exceeding a 4% minimum. Both ratios were higher than last year, when the Fed calculated that Bank of America would have a common equity Tier 1 ratio of 7.1 % and a Tier 1 leverage ratio of 5.1% at the low point of a recession. Bank of America’s projected pre-provision revenue jumped to $45.7 billion, up 33% from the Fed’s prediction on last year’s exam. But the bank’s projected trading and counterparty losses also expanded, up nearly 14% to $20 billion. The stress tests simulate a worldwide recession. The results were under the Fed’s “severely adverse” scenario of financial stress, which this year includes a 10% U.S. unemployment rate, significant losses in corporate and commercial real estate lending portfolios, and negative rates on short-term U.S. Treasury securities. The results will factor into the Fed’s decision next week about whether to approve the bank’s plan for rewarding shareholders with dividends or potential share buybacks. Banks whose capital ratios dropped close to minimum levels may choose to scale back their dividend or buyback plans before the Fed announces its final decision Wednesday. That day the banks can choose to announce whether they are raising their dividends or buying back more shares, important for enhancing shareholder returns. Bank of America fumbled the stress test for three of the past five years, more than any of its big peers. Last year, the Fed told Bank of America that it had concerns about the way the bank managed risk. The Fed said in December that the bank had improved its capital-planning processes but needed to continue to make “steady, demonstrable progress.” http://blogs.wsj.com/moneybeat/2016...eakdown-of-bank-stress-test-results/#entry_12
Ditto that, I added to my position during the Brexit drop Fed gives OK to 30 banks to up dividends, buy back shares The remaining 30 banks were allowed to raise dividends or repurchase shares. They include JPMorgan Chase & Co., Bank of America Corp., Citigroup Inc. and Wells Fargo & Co., which are the four biggest U.S. banks by assets. http://finance.yahoo.com/news/fed-gives-ok-30-banks-203048380.html
My guess is we are filling the gap. I was looking at the DAX drop for Brexit and it looks like 9950 or so for gap to be filled. Saw another one around 9850. My guess is they wanted to finish this month up before the 4th of July and selling resumes next week once people come back from the 4th of July. Let's see how this plays out. My bet is down after one more pop up. One rigged market this week
