Boston, MA 07/10/2013 (wallstreetpr) – Bank of America Corp (NYSE:BAC) is still attracting bullish sentiment since last week, surging further on Monday to close at $13.28, after hitting a high of $13.37 with high volume. Investors are closely watching the $13.40 price level to see if the stock has further potential. The company has announced a quarterly cash dividend of $0.38775 per depository share on the 6.204% series D non-cumulative preferred stock.
On July 5th, the jobs report announced by the Labor Department revealed an addition of 200,000 new jobs to the economy in June. The market did not expect this job rise, as the consensus was only 155,000, and most banking stocks and the broader indices experienced were positively influenced by the report. The current unemployment rate remained stable at 7.6%.
On the same day, Freddie Mac released the mortgage rates’ weekly estimates. The 30-year fixed rate mortgage went down to 4.29% from 4.46%, a record high, from the previous week. This drop can serve as a mortgage underwriting stimulant, creating a positive trend for banks.
The above news contributed to the recent rally of the banking sector stocks. Investors in Bank of America Corp (NYSE:BAC) are also watching other company-specific developments. On the positive side, the bank has already satisfied the established guidelines for the Basel III requirements, since the bank may meet more comfortably the levels stipulated by the Fed. The pressure of additional capital reserves by the bank has to be still watched, as it implies a lower ability for the bank to lend and generate revenue.
An $8.5 billion settlement case between Bank of America Corp (NYSE:BAC) and 22 institutional investors is to be resumed today. This resumption of the Article 77 hearing breaks the nearly one-month long hiatus and will decide whether the Bank has to pay the agreed upon amount or an even higher one, as well as whether the trustee Bank of New York Melon (NYSE:BNY) was remiss in agreeing to this deal on behalf of the investors.
