Today, Bank of America, one of the largest American banks, released its earnings and revenue report for the second quarter of this year, surpassing expectations.
Bank of America reported a 19% increase in profit to $7.41 billion, or 88 cents per share, compared to $6.25 billion, or 73 cents per share, in the same period last year. Revenue grew by 11% to $25.33 billion, driven by a 14% rise in net interest income to $14.2 billion, which almost met economists' forecasts. CEO Brian Moynihan highlighted the positive impact of higher interest rates and the growth in customer numbers and activity within the company.
Bank of America's stocks rose by less than 1% in premarket trading.
Fixed-income trading revenue surged by 18% to $2.8 billion, surpassing the estimated $2.77 billion, while equity trading declined by 2% to $1.6 billion, exceeding the estimated $1.48 billion.
It is worth noting that Bank of America's stocks have experienced an approximate 11% decline this year. In comparison, the banking index KBW has plummeted by 20%, primarily due to the turmoil in the US banking sector in March.
Premarket
Shares of automaker Ford fell by 5.94% after the company announced a $10,000 price reduction for its F-150 Lightning electric pickups. Other electric vehicle models will also see price reductions of at least $6,000 as Ford aims to increase production. In premarket trading, the stocks further declined by approximately 0.5%.
Despite previous delays, Tesla shares rose by 3.2% following the release of its long-awaited Cybertruck over the weekend. Premarket trading showed minimal movement.
Shares of telecommunications company AT&T dropped by 6.69% after Citi downgraded their rating from "buy" to "hold." The downgrade was based on uncertainty about the company's historical use of lead-sheathed cables. In premarket trading, the stocks rebounded by 0.5%.
Shares of entertainment company Paramount Global fell by 3.76% as the latest installment of the "Mission: Impossible" franchise failed to meet box office expectations. According to Variety, the film earned $56.2 million domestically over the weekend, lower than the previous film and $80 million in the first five days since its release. During premarket trading, the growth was only 0.30%.
Regarding the technical outlook for the S&P 500, there is continued demand for the index. Buyers have the opportunity to sustain the upward trend, but bulls must establish firm support above $4515. From this level, there could be a surge to $4539. Maintaining control over $4589 will be another important task for the bulls, strengthening the bullish market. In a downward movement due to decreased risk appetite, buyers must assert themselves in the $4488 area. A swift breakthrough would push the trading instrument back to $4469 and pave the way to $4447.
