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Bank of America
Ticker: NYSE:BAC
Price: $23.93
Company News
Bank of America (NYSE:BAC) earnings for the second quarter of fiscal 2020 have BAC stock dropping on Thursday. That’s in spite of the company reporting adjusted earnings per share (EPS) of 37 cents, which is better than Wall Street’s estimate of 27 cents. Also, the company’s revenue of $22.3 billion comes in above analysts’ estimates of $22.01 billion.
Additionally, the company reported GAAP EPS of 38 cents for the period.
Now, let’s take a closer look at the BAC earnings report:
- Adjusted EPS for the quarter declined 50% from 74 cents during the same time last year.
- Revenue is sitting 4.8% lower than the $23.1 billion from the year-ago period.
- Bank of America’s earnings report also reveals a net income of $3.5 billion.
- That’s 52.1% worse compared to its net income of $7.3 billion from the same period of the year prior.
Brian Moynihan, chairman and CEO of Bank of America, said this about his company’s report:
“In the most tumultuous period since the Great Depression, we delivered for our clients, our employees, our communities and our shareholders. Strong capital markets results provided an important counterbalance to the COVID-19-related impacts on our Consumer business, and our industry-leading digital capabilities allowed us to support clients amid difficult working conditions. We provided billions in credit to clients; announced a $1 billion, four-year commitment to drive economic and racial equality in our communities; strengthened our balance sheet by increasing deposits, capital and loan loss reserves; invested in technology and equipment to help keep our employees safe; and delivered for shareholders, earning more than twice our quarterly dividend.”
The company does not mention any sort of guidance for the rest of FY2020. That said, Wall Street’s estimates for the period call for EPS of $1.44 on revenue of $86.63 billion.
BAC stock was down 2.2% as of Thursday afternoon.
Business Summary
Bank of America Corporation is a bank holding company and a financial holding company.
The Company is a financial institution, serving individual consumers and others with a range of banking, investing, asset management and other financial and risk management products and services.
The Company, through its banking and various non-bank subsidiaries, throughout the United States and in international markets, provides a range of banking and non-bank financial services and products through four business segments:
Consumer Banking, which comprises Deposits and Consumer Lending;
Global Wealth & Investment Management, which consists of two primary businesses:
Merrill Lynch Global Wealth Management and U.S. Trust, Bank of America Private Wealth Management;
Global Banking, which provides a range of lending-related products and services;
Global Markets, which offers sales and trading services, and All Other, which consists of equity investments, residual expense allocations and other.
Price Performance
Relative Valuation
Technical Indicators
Overall, the bias in prices is: Downwards.
The projected upper bound is: 26.60.
The projected lower bound is: 21.31.
The projected closing price is: 23.96.
Candlesticks
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 20 white candles and 30 black candles for a net of 10 black candles.
A falling window occurred (where the bottom of the previous shadow is above the top of the current shadow). This usually implies a continuation of a bearish trend. There have been 6 falling windows in the last 50 candles–this makes the current falling window even more bearish.
Momentum Indicators
Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.
Stochastic Oscillator
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 76.9231. This is not an overbought or oversold reading. The last signal was a sell 0 period(s) ago.
Relative Strength Index (RSI)
The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 48.95. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 79 period(s) ago.
Commodity Channel Index (CCI)
The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 61. This is not a topping or bottoming area. The last signal was a sell 0 period(s) ago.
MACD
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 3 period(s) ago.
Rex Takasugi – TD Profile
BANK OF AMERICA closed down -0.670 at 23.930. Volume was 35% below average (neutral) and Bollinger Bands were 60% narrower than normal.
Open High Low Close Volume 23.750 24.220 23.550 23.930 10,999,697
Technical Outlook Short Term: Neutral Intermediate Term: Bearish Long Term: Bearish
Moving Averages: 10-period 50-period 200-period Close: 23.67 24.14 28.38 Volatility: 44 69 73 Volume: 11,361,098 15,258,804 13,999,438
Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.
Summary
BANK OF AMERICA gapped down today (bearish) on normal volume. Possibility of a Runaway Gap which usually signifies a continuation of the trend. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.
BANK OF AMERICA is currently 15.7% below its 200-period moving average and is in an downward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future.
Our volume indicators reflect volume flowing into and out of BAC.N at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on BAC.N and have had this outlook for the last 13 periods.
Bank of America Corporation (NYSE:BAC) Falls Despite Company Beating EPS added by HEFFX on
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