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☆ Treasuries see first weekly outflow since Feb as investors buy stocks
▼ + stars: | 2023-11-17 | by ( Lucy Raitano | ) www.reuters.com time to read: +2 min

A bronze seal for the Department of the Treasury is shown at the U.S. Treasury building in Washington, U.S., January 20, 2023. Investors snapped up $23.5 billion in stocks in the week to Nov. 15, marking the second largest weekly inflow into equities of 2023. Cash funds saw inflows of $20.5 billion, BofA said, and overall investors bought $2.6 billion in bonds, marking a sixth week of inflows. Outflows from emerging markets debt continued for the 16th week, with EM funds shedding $1.6 billion in the latest week. BofA's bull & bear indicator, a measure of market sentiment, rose marginally to 1.7 from 1.6, a contrarian "buy" signal, said BofA.

Persons: Kevin Lamarque, Cash, BofA, financials, Lucy Raitano, Amanda Cooper, Chizu Organizations: Department of, U.S . Treasury, REUTERS, Treasury, Bank of America, Investors, Federal Reserve, Thomson Locations: Washington , U.S, U.S, United States, Europe

☆ The next sustained growth in earnings could come in second half of 2024, says BofA's Keith Banks
▼ + stars: | 2023-11-17 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailThe next sustained growth in earnings could come in second half of 2024, says BofA's Keith BanksKeith Banks, Bank of America vice chairman and head of investment solutions, joins 'Squawk Box' to discuss the latest market trends, Treasury yield volatility, economic outlook, and more.

Persons: BofA's Keith Banks Keith Banks Organizations: Bank of America

ORLANDO, Florida, Nov 16 (Reuters) - The U.S. high yield bond market is the dog that has rarely barked, never mind bitten, during the Federal Reserve's most aggressive interest rate-raising campaign in 40 years. The 'junk' bond market may also contain less junk than it used to. But changes in the composition of a leading high yield corporate bond index over recent years suggests this might be the case. "The high yield index is a higher quality index than in cycles past," reckons Bill Callahan, investment strategist at Schroders. It is now below 400 bps, and high yield bond investors are the most overweight since January, BofA's latest survey shows.

Persons: Bill Callahan, BofA's, Ashwin Krishnan, Morgan Stanley, Jamie McGeever, Marguerita Choy Organizations: U.S, ICE, Schroders, Bank of, North America, Reuters, Thomson Locations: ORLANDO, Florida

Wednesday's batch of analyst research included bullish calls on a credit card giant and a sports betting name. The firm downgraded the pharmaceutical stock to neutral from overweight and lowered its price target to $55 per share from $68. The bank downgraded the Canadian Solar to underweight from neutral in a Wednesday note and lowered its price target to $22 per share from $32. The analyst noted that the guidance given confirms his bull case for the stock, which consists of a $70 price target. The bank initiated coverage of the credit card giant with an overweight rating and a $184 per share price target — which implies more than 17% upside from Tuesday's close.

Persons: Morgan Stanley, Guggenheim, John DiFucci, there's, Brian Evans, Cantor Fitzgerald downgrades, Myers Squibb Cantor Fitzgerald, We've, Olivia Brayer, Myers Squibb, — Brian Evans, Julien Dumoulin, Smith, Wells, Omar Mejias, Mark Strouse, DraftKings, Stephen Grambling, Grambling, Fred Imbert, millennials, Z, Gen, Terry Ma Organizations: CNBC, Barclays, American Express, Guggenheim, FactSet, Myers Squibb, Bank of America, Wells Fargo, Warner Music Group, accel, JPMorgan, American Locations: Bristol, Generac, Europe, CSIQ

☆ October's inflation report 'broke the hiking cycle's back,' and signals the Fed is done raising rates, Bank of America says
▼ + stars: | 2023-11-14 | by ( Phil Rosen | ) www.businessinsider.com time to read: +3 min

Bank of America changed its Fed outlook on Tuesday after a softer-than-expected CPI report. download the app Email address Sign up By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . AdvertisementOctober's softer-than-expected inflation reading prompted Bank of America on Tuesday to change its outlook on further interest rate increases, with strategists declaring that the Federal Reserve's rate hiking cycle is over. Inflation in October came in at 3.2% year-over-year, down from 3.7% in September and the lowest reading since June. In its note on Tuesday, the bank called the report "the straw that broke the hiking cycle's back."

Persons: —, Katie Stockton, seasonality, Stockton Organizations: of America, Service, Bank of America, Markets, Fed, Dow Jones Industrial, Nasdaq Locations: New York

[1/5] A trader reacts as a screen displays the Fed rate announcement on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., July 26, 2023. REUTERS/Brendan McDermid/File Photo Acquire Licensing RightsNEW YORK, Nov 14 (Reuters) - A benign U.S. inflation report is bolstering hopes that the Federal Reserve can bring down consumer prices without hurting the economy, a so-called Goldilocks environment that investors believe will benefit stocks and bonds. This does feel like a Goldilocks moment for the entire market.”The data fueled a powerful rally in stocks and bonds. The S&P 500 (.SPX) was up about 2% on the day, on track for its biggest one-day rise since January. Still, some investors believed it was too early to call a victory in the fight against inflation.

Persons: Brendan McDermid, Eric Kuby, bearish, “, Daniel Kirsch, Piper Sandler, Thomas Hayes, ”, Brian Rose, Jamie Cox, Lewis Krauskopf, Saqib Iqbal Ahmed, Davide Barbuscia, Ankika Biswas, Ira Iosebashvili, Nick Zieminski Organizations: New York Stock Exchange, REUTERS, Federal Reserve, North Star Investment Management Corp, Thomson Reuters, BofA's Global, Fed, Fund, UBS Global Wealth Management, Harris Financial, Thomson Locations: New York City, U.S, Thomson Reuters United States, New York, Bengaluru

☆ New housing construction and the Fed cutting rates will help spur housing turnover: BofA's Suzuki
▼ + stars: | 2023-11-13 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailNew housing construction and the Fed cutting rates will help spur housing turnover: BofA's SuzukiLiz Suzuki, Bank of America Securities senior analyst, joins 'The Exchange' to discuss Home Depot's upcoming earnings results, the outlook for the housing market, and more.

Persons: BofA's Suzuki Liz Suzuki Organizations: Bank of America Securities

☆ Cash funds continuing to attract inflows, set for record year - BofA
▼ + stars: | 2023-11-10 | by ( ) www.reuters.com time to read: +1 min

A Bank of America logo is pictured in the Manhattan borough of New York City, New York, U.S., January 30, 2019. REUTERS/Carlo Allegri Acquire Licensing RightsLONDON, Nov 10 (Reuters) - Global investors continued to pour money into cash funds in the week to Wednesday, as higher yields on short-dated debt put cash funds course for record inflows this year, according to Bank of America and data provider EPFR. BofA's weekly 'Flow Show' report showed cash funds attracted $77.7 billion of inflows in the week to Nov. 8, putting them on track to see around $1.4 trillion of inflows in 2023. Bond funds attracted inflows of $11.2 billion, BofA said, the largest weekly inflow in four months, after the Federal Reserve held interest rates steady and had signalled the tightening cycle could be over. Meanwhile, BofA said its Bull & Bear indicator of investor sentiment rose to 1.7 from 1.4, driven by strong inflows to high yield bond funds.

Persons: Carlo Allegri, Bond, BofA, Samuel Indyk, Alun John, Toby Chopra Organizations: of America, REUTERS, Global, Bank of America, Federal Reserve, Equity, Bank of Japan, Thomson Locations: Manhattan, New York City , New York, U.S

☆ Wall St Week Ahead Bargain or trap? US bank stock outlook hinges on Fed's path
▼ + stars: | 2023-11-10 | by ( David Randall | ) www.reuters.com time to read: +4 min

Bank stocks are at an all-time low compared with the S&P 500 based on relative prices, according to data from BofA Global Research. One key factor for bank stocks is whether the Federal Reserve is close to wrapping up a monetary tightening cycle that has brought the highest U.S. interest rates in decades. Yet signs the Fed may keep rates around current levels through most of next year have weighed on bank stocks. This month, analysts at BofA Global Research said investors should “selectively” add exposure to bank stocks in anticipation of an interest rate peak. Overall, about 61% of all outstanding mortgages have an interest rate below 4%, according to the Apollo Group, leaving consumers little incentive to refinance or move.

Persons: Brendan McDermid, ”, Quincy Krosby, Bill Gross, Neville Javeri, Goldman Sachs, Jeff Muhlenkamp, David Randall, Bansari Mayur, Ira Iosebashvili, David Gregorio Our Organizations: New York Stock Exchange, REUTERS, Silicon Valley Bank, Bank, BofA Global Research, LPL, Federal Reserve, Fund, Allspring Global Investments, Fifth Third Bancorp, Investors, Apollo Group, financials, Fed, Muhlenkamp & Company, Thomson Locations: New York City, U.S, Silicon

☆ US companies' debt cushion smallest since Q1 2021 :BofA
▼ + stars: | 2023-11-08 | by ( Matt Tracy | ) www.reuters.com time to read: +2 min

Coverage ratios hit their lowest since the first quarter of 2021, when companies in many sectors struggled with pandemic-related supply cost increases and weak demand. Median year-over-year earnings growth jumped 4.2% in the third quarter, from 0.6% in the second quarter, according to BofA Global. The median cost of debt increased to 3.77% in the third quarter from the second quarter - its highest since the fourth quarter of 2018. Companies' gross debt was little changed, but net debt growth turned negative for the first time since the third quarter of 2021. "(Investment-grade) issuers continued to manage their balance sheets conservatively in 3Q," wrote Yuri Seliger, credit strategist at BofA Global.

Persons: Carlo Allegri, Yuri Seliger, Matt Tracy, Chizu Organizations: New York Stock, REUTERS, BofA Global Research, BofA Global, Companies, BofA, Thomson Locations: Manhattan, New York City , New York, U.S, 11.24x

☆ Bank stocks could be the hot year-end trade if peak rates prove a 'mini clearing event'
▼ + stars: | 2023-11-07 | by ( Sarah Min | ) www.cnbc.com time to read: +3 min

It's time to pick positions in bank stocks heading into year end as peak rates could be a "mini clearing event" for the sector, according to Bank of America. "While we are careful to not [get] carried away, peak interest rates do have potential to serve as a mini clearing event for bank stocks," BofA's Ebrahim Poonawala wrote in a Sunday note. Regional banks are down by 27% this year, and have continued to face intense scrutiny due to their exposure to commercial real estate. "Best case, peak rates could mark near term bottom in bank stocks vs. S & P." To be sure, there remain issues in the sector. Bank stocks are highly tied to the broader economy and their loans could take a hit if the U.S. falls into a recession.

Persons: BofA's Ebrahim Poonawala, JPMorgan Chase, KRE, Poonawala, NIM, it's, Bryn Talkington, Talkington, Morgan Stanley, Bill Gross, Gross Organizations: Bank of America, Bank, Citigroup, JPMorgan, Regional Banking, P Bank, Federal Reserve, Capital Management, West Bancorp, Truist Financial, Citizens, Apple Locations: Wells Fargo, U.S

☆ Bank of America breaks down how to find the perfect ETFs for your portfolio in just 3 steps — and shares 15 top-rated funds with the best risk-adjusted returns
▼ + stars: | 2023-11-07 | by ( James Faris | ) www.businessinsider.com time to read: +4 min

Exchange-traded funds (ETFs) are easy to love, but successfully navigating the space can be challenging — even for experienced investors. Like mutual funds, ETFs allow investors to own many stocks at once. For example, investors' returns can be meaningfully altered by relative moves of the US dollar. Within that group, just 15 ETFs had a Sortino ratio of over 1. The Sortino ratio evaluates a fund or ETF's returns on a risk-adjusted basis relative to its downside volatility, and any mark over 1 is seen as solid.

Persons: Jared Woodard, Woodard Organizations: Bank of America, BofA's Research Investment Locations: There's, foolproof, one's, Japan, India, Mexico

☆ Apple is not really immune to consumer softness, says BofA's Wamsi Mohan
▼ + stars: | 2023-11-03 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailApple is not really immune to consumer softness, says BofA's Wamsi MohanWamsi Mohan, Bank of America Securities senior analyst, joins 'Squawk Box' to break down Apple's quarterly earnings results, which beat on top and bottom lines but revealed overall sales fell for the fourth quarter in a row, the headwinds facing the company, and more.

Persons: BofA's Wamsi Mohan Wamsi Mohan Organizations: Bank of America Securities

☆ A slower holiday sales season won't be a problem for these 4 consumer companies
▼ + stars: | 2023-11-02 | by ( Paulina Likos | ) www.cnbc.com time to read: +8 min

Holiday sales growth is expected to be sluggish this year as shoppers continue to get squeezed by sticky inflation. "Shoppers are setting strict budgets for their holiday shopping," BofA said in a recent note. And, on Wednesday evening, the company said October net sales rose 4.5% year-over-year to $18.53 billion, continuing a streak of monthly sales growth. TJX YTD mountain TJX Companies YTD TAG expects holiday sales at off-pricers to grow 6% year over year, which would be faster than last year's 4.3% increase. Black Friday and Cyber Monday will remain popular holiday shopping events, the analysts anticipate, as more shoppers spread out their holiday purchases.

Persons: BofA, discounters, Andy Jassy, Jim Cramer's, Jim Cramer, Jim, Eduardo Munoz Organizations: Club, Bank of America, Shoppers, Starbucks, Costco, TJX Companies, BofA, China comps, comps, TJX, Marshalls, TAG, Amazon, Deal, CNBC, People Locations: China, China comps ., Maxx, HomeGoods, U.S, Canada, New York City

☆ Take advantage of this stock market correction and another quarter of strong earnings by making these 10 moves now, according to top strategists at 4 investment firms
▼ + stars: | 2023-11-01 | by ( James Faris | ) www.businessinsider.com time to read: +7 min

The S&P 500 is down 7% since the start of September and briefly entered correction territory from its summer high last week. However, strategists say these threats are mostly priced into stocks, but higher earnings aren't. After three straight quarters of contracting profits, both BofA and UBS expect earnings to grow at least 3% year-over-year in Q3. "Within the context of our expectations for a continued choppy backdrop, we are incrementally more positive," Lerner wrote in a late October note. Truist's more constructive view on equities is based on strong results so far in Q3, Lerner wrote.

Persons: Oppenheimer, Savita Subramanian, Marcelli, David Lefkowitz, Lefkowitz, John Stoltzfus, Stoltzfus, Keith Lerner, Lerner, it's, Truist, Mark Haefele Organizations: Bank of America, UBS, Bank of America's, Equity, UBS Global Wealth Management, Federal Reserve, Israel, Oppenheimer Asset Management Locations: Israel, Ukraine, Truist, Real, Charlotte

☆ The S&P 500 could soar 16% in the next year as a 'buy' signal with strong track record close to flashing, Bank of America says
▼ + stars: | 2023-11-01 | by ( Jennifer Sor | ) www.businessinsider.com time to read: +3 min

The stock market is close to flashing a "buy" signal with a strong track record, according to BofA. BofA's sell side indicator is three times closer to a "buy" reading than a "sell" reading. The indicator suggests 15.5% upside in the S&P 500 over the next year, analysts said. AdvertisementAdvertisementThe stock market is close to flashing a "buy" signal that's almost always resulted in positive returns for the S&P 500 in the following 12 months, according to Bank of America. That's caused equities to look less attractive and ratcheted up fears of a coming recession, sparking a sell-off in stocks that drove the S&P 500 to its third-straight monthly loss.

Persons: —, Bank of America's Savita Subramanian Organizations: Service, Bank of America, Wall, SSI, Bank of America's, Fed

☆ BofA's Sara Senatore on McDonald's earnings beat: Same-store sales growth a reflection of price hike
▼ + stars: | 2023-10-30 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailBofA's Sara Senatore on McDonald's earnings beat: Same-store sales growth a reflection of price hikeSara Senatore, BofA Securities senior restaurants analyst, joins 'Squawk Box' to discuss McDonald's quarterly earnings results, which beat analyst earnings and revenue expectations, the state of the restaurant sector at large, and more.

Persons: Sara Senatore Organizations: BofA Securities

☆ The S&P 500 could fall another 5% and test a critical support level that has previously marked the bottom, Bank of America says
▼ + stars: | 2023-10-27 | by ( Matthew Fox | ) www.businessinsider.com time to read: +2 min

The S&P 500 could fall another 5% to test a critical support level, according to Bank of America. AdvertisementAdvertisementThe S&P 500's 10% decline since the end of July is putting the index within striking distance of a critical technical support level, according to Bank of America. The 200-week moving average measures the average price of the S&P 500 over the past four years, and it's been consistently rising ever since 2012. The S&P 500 has had a tendency to test this line during periods of market stress over the past decade. Meanwhile, the S&P 500 recently broke below a shorter-term technical support level: the 4,180 to 4,195 range, according to Fairlead Strategies' Katie Stockton.

Persons: BofA's Michael Hartnett, —, Michael Hartnett, it's, Hartnett, Katie Stockton Organizations: Bank of America, Service, Bank of America . Investment

Reuters Image Acquire Licensing RightsAnd that is reflected in the return of the "term premium," the amorphous amount of compensation investors demand for buying long-dated bonds instead of rolling over bills. A San Francisco Fed model estimates that the term premium on the 10-year Treasury bond has risen around 100 basis points since July. Reuters Image Acquire Licensing RightsAnalysts at Morgan Stanley reckon the term premium and debt sustainability worries could prompt a rethink of the bill-coupon supply balance. Bill supply around these levels would be well down on net issuance of just over $1.6 trillion in fiscal year 2023. Reuters Image Acquire Licensing RightsReuters Image Acquire Licensing RightsIn an ideal world, Treasury would not choose to rely on such short-term funding needs.

Persons: Kevin Lamarque, Morgan Stanley, Bill, Committee's, Jamie McGeever, Marguerita Choy Organizations: Department of, U.S . Treasury, REUTERS, Rights, U.S, Treasury, San, San Francisco Fed, New York Fed, Bank of America, TD Securities, Bills, Reuters, Securities, Thomson Locations: Washington , U.S, Rights ORLANDO , Florida, San Francisco

☆ We expect Q4 to be meaningfully softer than Q3, says BofA's Aditya Bhave
▼ + stars: | 2023-10-20 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailWe expect Q4 to be meaningfully softer than Q3, says BofA's Aditya BhaveAditya Bhave, Bank of America senior U.S. economist, joins 'Squawk on the Street' to discuss the bond market's outlook, the impact of broadly strong balance sheets on consumer spending, and more.

Persons: BofA's Aditya Bhave Aditya Bhave Organizations: Bank of America

☆ Bank of America: Buy these 11 AI-exposed stocks that have both explosive potential and stable dividends
▼ + stars: | 2023-10-18 | by ( James Faris | ) www.businessinsider.com time to read: +3 min

Investors took note and scrambled to get exposure to AI stocks, many of which are among this year's top performers. Top investment firms like Bank of America, Morgan Stanley, and UBS told clients this summer that AI is worth the hype. 11 high-upside AI stocks with dividendsThere's no shortage of ideas about how to profit from AI, as Insider has noted throughout 2023. Bank of America recently put together a list of 164 buy-rated stocks across industries that are tied to AI. Below are those 11 high-upside, stable-dividend stocks with AI exposure and a buy rating from Bank of America along with the ticker, market capitalization, previous close, sector, industry, and country for each.

Persons: Morgan Stanley, Goldman Sachs, Alkesh Shah, Shah Organizations: Bank of America, UBS, Robotics, Intelligence, Technology, US

☆ CNBC Daily Open: Bonds are driving stocks even amid big bank earnings
▼ + stars: | 2023-10-18 | by ( Yeo Boon Ping | ) www.cnbc.com time to read: +2 min

CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Markets in holding patternU.S. stocks struggled to make any meaningful moves Tuesday as Treasury yields rose — the 2-year yield hit a 17-year high. A breakdown of the bank's revenue performance: Bond trading revenue fell 6%, equities trading revenue rose 8% and investment banking revenue inched up 1%. Profit popped 10% from a year ago to $7.8 billion and revenue rose 2.9% to $25.32 billion. High bond yields, interest rates and the Israel-Hamas war remain risks to financial markets, he said.

Persons: Dow Jones, David Russell, Goldman Goldman Sachs, weren't, Goldman, isn't Organizations: CNBC, Commerce Department, Goldman, Bank of America Bank of America, Wall Locations: Germany, U.S, Israel

A Bank of America logo is pictured in the Manhattan borough of New York City, New York, U.S., January 30, 2019. BofA's investment banking and trading units managed to outperform Wall Street expectations as they reported higher revenue, bucking an industry-wide slump. Total investment banking fees rose 2% to $1.2 billion, while sales and trading revenue was up 8% to $4.4 billion in the third quarter. BofA's net interest income (NII) rose 4% in the third quarter to $14.4 billion. BofA's revenue, net of interest expense, increased 3% in the quarter to $25.2 billion.

Persons: Carlo Allegri, Brian Moynihan, BofA, Wells, Manya Saini, Nupur Ananad, Saeed Azhar, Lananh Nguyen, Anil D'Silva Organizations: of America, REUTERS, Bank of America, Federal Reserve, Lending, JPMorgan Chase, Citigroup, Thomson Locations: Manhattan, New York City , New York, U.S, NII, Bengaluru, Nupur, New York

A Bank of America logo is pictured in the Manhattan borough of New York City, New York, U.S., January 30, 2019. Revenue at BofA's consumer banking unit rose 6% to $10.5 billion in the third quarter. BofA's investment banking and trading units outperformed. Total investment banking fees rose 2% to $1.2 billion, bucking an industry-wide slump. Sales and trading revenue was up 8% to $4.4 billion in the third quarter to its highest in more than a decade.

Persons: Carlo Allegri, Brian Moynihan, BofA, Alastair Borthwick, Borthwick, Wells, Manya Saini, Nupur Ananad, Saeed Azhar, Lananh Nguyen, Anil D'Silva Organizations: of America, REUTERS, Bank of America, U.S, Federal Reserve, Lending, JPMorgan Chase, Citigroup, Thomson Locations: Manhattan, New York City , New York, U.S, NII, Bengaluru, Nupur, New York

☆ BofA: Investors sell stocks, buy bonds; shun emerging markets
▼ + stars: | 2023-10-13 | by ( ) www.reuters.com time to read: +1 min

REUTERS/Brendan McDermid/File Photo Acquire Licensing RightsLONDON, Oct 13 (Reuters) - Investors sold stocks and bought bonds in the week to Wednesday, Bank of America Global Research said in a note on Friday, while investors continued to shun emerging market assets. Equities had a weekly outflow of $8.2 billion, BofA said, citing EPFR data, while investors favoured the relative safety of bonds, which had inflows of $3.7 billion. Inflows into Treasuries totalled $7.2 billion, the largest weekly inflow since March 2023, BofA said. Investors dumped emerging market debt and stocks in the latest week, with outflows from equities at $4.3 billion, their largest weekly outflow since May 2022, BofA said. The 10-year yield was last at 4.6248%.

Persons: Brendan McDermid, BofA, Michael Hartnett, Hartnett, BofA's, Samuel Indyk, Amanda Cooper, Jane Merriman Organizations: New York Stock Exchange, REUTERS, Bank of America Global Research, Investors, Thomson Locations: New York City, U.S, Treasuries

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