Bank of America (BAC), the second-largest bank in the U.S., announced earnings that fell short of analyst痴 expectations due to higher loan losses, as well as lower earnings from trading.
Analysts from Thomson First Call expected earnings of a $1.02, and the company earned 93 cents. What was the real culprit? Consumers scurried to file for bankruptcy before the laws changed last October.
I am not concerned at all with BAC announcement. Bank of America is one of those stocks that I have on auto pilot, and I reinvest the 5% dividend every quarter. Long term investors should do the same.
Today's Market
After Friday's sell-off, the popular averages continued to hold above key support levels with the exception of the DJIA. At the close, the key indexes closed at:
DJIA: 10688, up 21.38
S&P 500: 1263.49, up 2.33
NASDAQ Composite: 2248.47, up .77
The key support levels are:
S&P 1240-1250
DJIA 10,700-10,750
NASDAQ 2200
The upside resistance levels are:
S&P 1300-1350
DJIA 11,000
NASDAQ 2500-2600
According to our friends at Erlanger Squeeze Play (erlangersqueezeplay.com), Phil Erlanger believes that 典here may be some backing and filling as January passes into February, but the path of least resistance now appears to be down".
As far as the upside targets are concerned, we will probably see continued selling as the season strength of the market peter's out into the February-April timeframe.
The biggest winner on the Dow today was General Motors (GM). GM rallied almost 9% after Ford announced better that expected results.
Shares of internet darling Google (GOOG) also had a nice rally as shares rose $28.03 or 7% after Friday's sell-off. I am looking for Google to climb to around the $450 level and stall out, as investors wait for its end of the month earnings release.
Comments (1)
Isn't it true that financials are good buys nearing the peak of the interest rate cycle? Although we aren't there yet, seems to me banks should start drawing some attention...
Flaws in this logic?
Posted by RC | January 24, 2006 2:39 AM
Posted on January 24, 2006 02:39