Bank of America Shares Give Bulls Hope
Updated for latest share price, notes Dec. 4 close at $16.28.
NEW YORK (TheStreet) -- Bank of America (BAC) finished Tuesday back above $16, extending a recent rally and offering hope for breakout bulls.
Financials were largely left out of the year-end Santa Claus rally. Though Bank of America shares touched above the $16 mark during three December trading sessions, they closed down on two of them. The stock did finish at $16.28 on Dec. 4 as part of the heavy trading that followed news of its plan to repay $45 billion in TARP funds on Dec. 2, and then the strong pricing of its subsequent equity offering on Dec. 3, but the shares proved unable to hold onto those gains as the year drew to a close, even briefly pulling back to close below $15, where its stock offering priced, on Dec. 17.
On Tuesday, however, Bank of America shares added 51 cents, or 3.3%, to close at $16.20. At that level, the stock was up 7.6% for the year, ahead of its fourth-quarter report, due on Jan. 20, that may show credit costs have peaked, as CEO Brian Moynihan assured colleagues at an event earlier this week.
"The worst is behind us in the sense of credit," Moynihan said on Monday. The finish above $16 on Tuesday had the stock once again threatening to move more than 5% above its 200-day moving average of $15.57, although the shares were pulling back slightly in early action Wednesday, losing 3 cents to $16.17.Select the service that is right for you!
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