Bank of America Earnings Lift Stocks

123jump.com Staff
21 Jul, 2008
New York City

U.S. stocks edged higher in the morning trading on better than expected earnings from Bank of America. Crude oil futures edged higher as Tropical Storm Dolly brewed in the Gulf of Mexico. European markets at mid-day edged upwards. In Asia, Australia and Hong Kong added more than 3%.

[R]9:15AM New York – U.S. stocks edged higher after Bank of America earnings lifted financial stocks.[/R]

In New York trading, crude oil jumped $2.43 a barrel to $131.31 and natural gas increased 13 cents to $10.70 a MBtu. Crude oil futures headed higher as impending storm in the Gulf of Mexico could bring more than severe rain in areas where oil drilling and refining operations are in Mexico. According to the U.S. weather forecasters, the current direction of the Tropical Storm Dolly, which is likely to develop into a hurricane, may spare the installations in the U.S.

Bank of America surged 9% in the pre-market trading on better than expected earnings. Bank of America Corporation, the nation’s second largest bank by assets reported second quarter revenues rose 3% to $20.32 billion from $18.37 billion a year ago. Net income in the quarter falls 41% to $3.41 billion or 72 cents per diluted share compared to net income of $5.76 billion or $1.28 per share, a year ago.

Bank of America Corporation ((BAC)) in the last one year traded as high as $52.96 in October 2007 and as low as $18.44 in July 2008. Based on the Friday’s closing price the company has a market cap of $122.41 billion.

Yahoo! agreed to add three board members nominated by activist investor Carl Ichan. The settlement between the Internet company and often perceived as hostile investor Ichan will at least for now put battle between two to a rest.

American International Group Inc. ((AIG)) rose 4% to $26.00 in the pre-market trading after Bank of America raised the insurer to ‘buy’ from ‘neutral.’

Europe Markets Review

In London FTSE 100 Index closed higher 33.40 or 0.62% to 5,409.80, in Paris CAC 40 Index increased 39.37 or 0.92% to close at 4,338.73 and in Frankfurt DAX index higher 68.00 or 1.07% to close at 6,450.65. In Zurich trading SMI increased 81.31 or 1.19% to close at 6,908.62.

Asian Markets Review

Hang Seng index in Hong Kong increased 658.71 or 3.01% closed to 22,532.90. ASX 200 index in Australia increased 171.40 or 3.54% to close 5,011.80. The KL Composite index in Malaysia decreased 1.56 or 0.14% closed to 1,103.48. Financial markets in Japan were closed today.

The Kospi Index in South Korea increased 52.93 or 3.51% to close at 1,562.92, SET index in Thailand closed higher 22.78 or 3.43% to 687.30 and JSE Index in Indonesia increased 53.93 or 2.52% to 2,195.07. The Sensex index in India increased 214.64 or 1.57% to 13,850.04.