Bank of America Corp (NYSE:BAC) shares trading high
The shares of Bank of America Corp (NYSE:BAC) augmented to close at $13.06 in trading session of Friday, July 5. This closing figure demonstrates rise of 1.79%. After opening at $12.99, the stock exhibited an intraday high of $13.08 prior to closure at $13.06. With average volume as high as 124.14 million shares in last 90 trading sessions, almost 80.76 million shares traded in session of Friday. The reason behind the surge of the stock is the fall in the rates of mortgage as well as a quite positive June jobs report.
It was informed by the Chairmen of Fed, Ben Bernanke in May end that there is a possibility that the central bank may cut down on its support extension towards the market. This support, pertaining to purchases of bonds, at present, stands at $85 billion a month. In the long-term there would be higher consequences pertaining to long-term interest rates, apparently low prices of stock and lower prices of bonds, provided that that investors would run towards securities with fixed income, looking for yield.
There was an announcement made by the Labor Department that there has been addition of 195,000 jobs in the previous month by the employers. The prediction was 155,000 and the actual result was much more than the forecasted figure, even though the actual jobs were not sufficient to demonstrate a noticeable upward movement in the overall employment. This release of the number of jobs added standing in the decision of the Fed I commencing with tapering.
Additionally, on July 5, the mortgage rates’ weekly estimates were released by Freddie Mac. In the previous week, the 30-year fixed rate mortgage mounted to 4.46%, which is the highest in the history. However, it seems to turning down at 4.29%. This is a positive trend for the banks as it can perform as a mortgage underwriting stimulant. All of these are the causes behind increase in the stock prices of many banks including Bank of America Corp (NYSE:BAC).