The broad indices all ended lower, as investors continued to worry over the land-grab in Ukraine engineered by Russian President Vladimir Putin.
There will be a referendum in Crimea on Sunday over whether or not the semi-autonomous region will split from Ukraine and become part of Russia, with voting conducted under the watchful eye of Russian troops pretending not to be Russian troops. U.S. Secretary of State John Kerry has given Russia until Monday to back down or face sanctions, but with so much on the line economically, including a major supply of Western Europe's winter heating fuel, it seems doubtful that the United States or other nations will bring serious sanctions to bear against Russia.
Back home, the Thomson Reuters/University of Michigan preliminary index of consumer sentiment declined to 79.9 in Marc from 81.6 in February. The March reading was the fourth-straight decline, and was way below the consensus estimate of 82.0, among analysts polled by Thomson Reuters.The KBW Bank Index (I:BKX) was down 0.5% to 69.54, with all but seven of the 24 index components ending with declines. The index has risen slightly this year, following a 35% gain in 2013 and a 30% gain during 2012. Slowing Loan Growth Shares of Bank of America have returned 8% this year, following a 34.5% return during 2013. The shares trade for 1.2 times their reported Dec. 31 tangible book value of $13.79, and for 10.4 times the consensus 2015 earnings estimate of $1.62, among analysts polled by Thomson Reuters. The consensus 2014 EPS estimate is $1.32. JPMorgan analyst Vivek Juneja rates Bank of America "outperform," with a price target of $18.00, estimating the company will earn $1.41 a share this year, with EPS rising to $1.68. Following a meeting with Alastair Borthwick, the head of BAC's Global Commercial Banking (GCB) unit, Juneja in a note to clients on Friday wrote that the GCB was expecting loan growth "to trend a little above GDP Growth" this year, which would be a major decline from 11% loan growth during 2014.
This chart shows the performance of Bank of America's stock against the KBW Bank Index and the S&P 500
data by YCharts