BAC Jan 2020 31.000 put

OPR - OPR Delayed price. Currency in USD
-0.0900 (-5.00%)
As of 3:55PM EDT. Market open.
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Previous close2.0300
Expiry date2020-01-17
Day's range1.7300 - 1.8300
Contract rangeN/A
Open interest3.89k
  • Zacks

    Bank Stock Roundup: Q3 Earnings Season Unfolds, JPMorgan, BofA & Citi Top Estimates

    Investor sentiment upbeat on banks' Q3 earnings, with the major players displaying top-line strength on the back of higher fee income and loan growth.

  • 4 Banks Riding High on Impressive Q3 Earnings

    4 Banks Riding High on Impressive Q3 Earnings

    Bank stocks defied rate cut fears and have considerably outperformed analysts' estimates in third-quarter 2019 so far.

  • Hasenstab Flips to Safe-Haven Currencies Amid $3 Billion Loss

    Hasenstab Flips to Safe-Haven Currencies Amid $3 Billion Loss

    (Bloomberg) -- Franklin Templeton star bond investor Michael Hasenstab, who saw two of his biggest investments flop in August, is loading up on safe-haven currencies and winding down massive holdings in emerging markets.The fund manager doubled exposure to the yen to 40% in the $30 billion Templeton Global Bond Fund in the third quarter, according to a recent filing. He’s also added long positions in the Norwegian krone and Swedish krona and is increasing liquidity by boosting cash across his funds, he said in an October note.Total net assets in the global bond fund dropped by $3 billion in the three months through September as a massive holding in Argentina was pummeled by the country’s default. The fund was also holding a huge short position in U.S. Treasuries as yields sank to a three-year low.“A number of global risk factors have increased, raising the need to hedge some of our foreign exchange risk exposures and counterbalance our U.S. rate hedge,” said Hasenstab, who oversees more than $100 billion. “The potential for a geopolitical event appears higher than it has been in decades, given ongoing tensions among major world powers.”Templeton’s Global Bond Fund has underperformed more than 80% of peers this year, losing 1.6% compared with a return of about 7% from Treasuries. The fund has returned 2.3% in the past three years, data compiled by Bloomberg show.Cash and cash equivalents represented around 23% of assets in the fund as of the end of September. A Bank of America survey of global fund managers published this week showed cash holdings averaged about 5%.Treasury ShortThe fund is holding on to its Treasury short, but shifting the focus to those with longer maturities, according to the report. Hasenstab argues that markets continue to overvalue long bonds given rising deficit spending and rising debt. He is also betting that the yen will appreciate against the dollar as monetary-policy divergence narrows between the Federal Reserve and the Bank of Japan.Average duration in the Global Bond Fund, a measure of sensitivity to shifts in rates, increased to minus 1.39 years as of the end of September, the filings show. At the end of June it was a record low of minus 2.82 years.While Hasenstab continues to see value in emerging markets, he says he is now “sizing and hedging” positions for individual risks. A 14% holding in Brazilian bonds, for example, is being offset by a net-negative position in the Australian dollar, according to the report.“Investment strategies that may have worked well over the last decade are not as likely to be effective in the next one,” Hasenstab said. “Investors need to prepare for today’s challenges by building portfolios that can provide true diversification against highly correlated risks present across many asset classes.”(Updates with cash position in sixth paragraph.)To contact the reporter on this story: Natasha Doff in Moscow at ndoff@bloomberg.netTo contact the editors responsible for this story: Gregory L. White at, Cecile Gutscher, Samuel PotterFor more articles like this, please visit us at©2019 Bloomberg L.P.

  • Record Profits Are Still in Sight for Big Banks Despite Rate Cuts

    Record Profits Are Still in Sight for Big Banks Despite Rate Cuts

    (Bloomberg) -- For the first time in four years, interest rates hurt instead of helped the biggest U.S. banks. It wasn’t enough to knock them off pace to top last year’s profit record.Revenue at the six largest firms climbed from a year earlier for the 12th time in the past 13 quarters, helped by better-than-expected gains in trading and a surprise jump in investment banking. JPMorgan Chase & Co., the nation’s biggest bank, notched a new revenue record. That all came in spite of the group’s net interest income posting its first drop since 2015 as the Federal Reserve lowered interest rates twice in the quarter.For all the hand-wringing about low rates, trade wars and a possible economic slowdown, the biggest banks are still riding high. A healthy consumer, lower corporate tax rates and stock markets at all-time highs have the firms on track to break the all-time earnings high of $120 billion in 2018.“The banks had set low expectations in September, and it turned out that the results were pretty strong,” Julien Courbe, financial services advisory leader at PricewaterhouseCoopers. “I think a big question would be whether the rate cuts would actually stimulate loan demand, and we heard from the earnings that it did.”While capital rules introduced to make banks safer after the financial crisis have ended the glory days, when return on equity often topped 20%, all six banks have clawed their way back to double-digits this year for the first time since the crash.Investors are taking note: shares of all the banks except Citigroup Inc. climbed this week, with Morgan Stanley, Bank of America Corp. and JPMorgan all surging more than 3.5%. Here are the week’s main takeaways:TradingBanks upended forecasts by posting strong revenue in their trading businesses this week.Every firm beat analysts’ estimates as volatility in fixed-income markets created opportunities for trading desks. Morgan Stanley was the biggest surprise, with debt trading jumping 21% instead of dropping 5% as analysts had predicted. Fixed-income trading at JPMorgan rose by the most in almost three years.At Bank of America, strong trading results added to good news on the investment-banking front, where revenue shot up almost 26% from a year earlier and beat expectations. Goldman Sachs Group Inc. suffered the opposite fate: It posted strong trading results but investment-banking fees took a bigger hit than expected.ConsumerThe top four retail banks pulled in record revenue for the fifth straight quarter, a sign that the U.S. consumer remains healthy even as some economic indicators have sparked fears of a coming recession.“The U.S. economy is still in solid shape, despite the worries and concerns about trade wars, capital-investment slowdowns or other global macro conditions,” Bank of America Chief Executive Officer Brian Moynihan said on a conference call with analysts. “Across nearly every line of business, we are seeing strong consumer activity.”JPMorgan, Bank of America, Citigroup and Wells Fargo & Co. collectively made $40.6 billion in consumer revenue this quarter. JPMorgan led the group with the most consumer revenue it’s ever had in the third quarter.Still, there were notes of caution. JPMorgan and Wells Fargo increased loan-loss reserves for the second time in the past seven quarters and Citigroup increased its reserves by the most in two years.Wealth ManagementThe push by discount brokerages to eliminate commissions on many types of trades did little to dent confidence at the big banks.Bank of America and Morgan Stanley, which both own U.S. brokerages with almost $3 trillion in assets apiece, said they’re focused on longer-term relationships with wealthier customers -- the ones who are willing to pay up for better service and advice.Almost 90% of Bank of America’s self-directed trading business is already handled without commissions, Moynihan said Wednesday.Morgan Stanley CEO James Gorman said his company is aiming at households worth more than $1 million, and especially those with more than $10 million.\--With assistance from Lananh Nguyen, Michelle F. Davis, Sridhar Natarajan and Jenny Surane.To contact the reporter on this story: Gwen Everett in New York at geverett10@bloomberg.netTo contact the editors responsible for this story: Michael J. Moore at, Steve DicksonFor more articles like this, please visit us at©2019 Bloomberg L.P.

  • Zacks Earnings Trends Highlights: JPMorgan, Bank of America and Goldman Sachs

    Zacks Earnings Trends Highlights: JPMorgan, Bank of America and Goldman Sachs

    Zacks Earnings Trends Highlights: JPMorgan, Bank of America and Goldman Sachs

  • Wall Street Goes ‘Where the Growth Is’ on Wealth Advice, Not 0%

    Wall Street Goes ‘Where the Growth Is’ on Wealth Advice, Not 0%

    (Bloomberg) -- The biggest U.S. lenders aren’t ruffled by the push among discount brokers to cut commissions to zero.Wall Street firms from Bank of America Corp. to Morgan Stanley said they’re focused on longer-term client relationships instead of just boosting stock-trading activity. Discount brokers Charles Schwab Corp., TD Ameritrade Holding Corp. and E*Trade Financial Corp. announced this month that they would cut fees to trade U.S.-listed stocks, ETFs and options to zero, sending shares plunging and fueling speculation about potential mergers.“We don’t focus on trying to drive a pure trading type of thing,” Bank of America Chief Executive Officer Brian Moynihan told analysts on Wednesday. “The $0 change won’t affect us much, largely because we frankly introduced it 13 years ago,” and about 87% of the company’s self-directed trading business is already done without commissions, he said.For Morgan Stanley, commissions from buying and selling stocks represents a small portion of the firm’s wealth-management revenue, according to its chief, James Gorman. Instead, the firm sees more potential to expand its financial-advisory services to households worth $1 million to $10 million, as well as those with more than $10 million.“That’s where the growth is,” Gorman told analysts Thursday. “That is where the advice fee is very fair and very reasonable.”As brokerage shares fell after the free-trading announcements, analysts and industry participants speculated that some firms would come under pressure to merge or sell. At least one bank, Goldman Sachs Group Inc., said it’s not interested in buying.“The discount brokerage area is not one that we’re particularly focused on,” Goldman Sachs Group Inc. Chief Executive David Solomon said Tuesday.To contact the reporters on this story: Lananh Nguyen in New York at;Jenny Surane in New York at;Hannah Levitt in New York at hlevitt@bloomberg.netTo contact the editors responsible for this story: Michael J. Moore at, Steve Dickson, Alan MirabellaFor more articles like this, please visit us at©2019 Bloomberg L.P.

  • Morgan Stanley (MS) Q3 Earnings Top on Bond Trading, Advisory

    Morgan Stanley (MS) Q3 Earnings Top on Bond Trading, Advisory

    Higher trading and investment banking revenues support Morgan Stanley's (MS) Q3 earnings.

  • Stock Market News for Oct 17, 2019

    Stock Market News for Oct 17, 2019

    Major U.S. market indexes closed in the negative territory on Wednesday on the back of weak retail sales for September and fresh tensions between the United States and China.

  • Solid Start to Q3 Earnings Season

    Solid Start to Q3 Earnings Season

    Solid Start to Q3 Earnings Season

  • Reuters - UK Focus

    GLOBAL MARKETS-Stocks flat on data, earnings; pound volatile

    European stocks pulled back slightly from their strongest closing high in more than a year as clashing headlines on Britain's last-minute efforts to forge a divorce deal with the European Union left investors hanging on the outcome. On Wall Street, stocks retreated after monthly retail sales data for September showed a decline for the first time in seven months, raising concerns that softness in the manufacturing sector was starting to spread to the broader economy.

  • Business Wire

    Bank of America Announces Redemption of 2.151% Senior Notes, due November 2020

    Bank of America Corporation announced today that it will redeem all $1,000,000,000 principal amount outstanding of its 2.151% Senior Notes, due November 2020 (CUSIP No. 06051GGB9) (the “Notes”), on November 9, 2019, at a redemption price equal to 100% of the principal amount of the Notes, plus accrued and unpaid interest to but excluding the redemption date of November 9, 2019. Since November 9, 2019 is not a business day, the redemption price will be paid on the next succeeding business day, November 12, 2019. Payment of the redemption price for the Notes will be made through the facilities of The Depository Trust Company.

  • Reuters - UK Focus

    US STOCKS-S&P 500 dips as economic data, trade worries offset upbeat earnings

    The benchmark S&P 500 stock index edged lower on Wednesday as weak U.S. economic data and simmering geopolitical tensions spooked buyers away from the equities market, despite a string of generally positive third-quarter corporate earnings reports.

  • Bloomberg

    BofA Rallies on Beating Earnings ‘Like a Boss,’ Street Says

    (Bloomberg) -- Bank of America Corp. stock held onto gains on Wednesday, even as other banks turned negative, as analysts hailed better-than-expected quarterly results. The bank also kept its 2019 net interest income, or NII, growth forecast at 1%.Shares were 2% higher in the afternoon, paring a gain of as much as 3.3% to the highest since Aug. 1. At the same time, the KBW bank index fell as much as 0.4%.“In a moderately growing economy, we focused on driving those things that are controllable,” BofA CEO Brian Moynihan said. His comments in BofA’s earnings statement came along with CFO Paul Donofrio, saying that BofA had “remained disciplined in managing expenses and responsible in our approach to underwriting, which led to continued low costs and strong asset quality.”Other bank stocks that were clinging to gains after earnings beats on Wednesday included BNY Mellon Corp., which pared an increase of as much as 3%; PNC Financial Services Group, paring a rise of as much as 1.8%; and US Bancorp, which trimmed a gain of as much as 3.2%. Meanwhile, big banks that had post-earnings gains on Tuesday slipped with Wells Fargo & Co. dropping as much as 1.3% and Citigroup Inc. falling 2.2%. JPMorgan Chase & Co. was little changed.Those Tuesday earnings had showed the “consumer is booming, with better than expected loan growth and spend and lower than expected credit losses,” Morgan Stanley analyst Betsy Graseck wrote in a note. “How long will it last? Until layoffs start rising ... which we don’t see many signs of right now.” Separately on Wednesday, U.S. retail sales unexpectedly posted the first decline in seven months.Here’s a sample of the latest commentary on BofA:Evercore ISI, Glenn SchorrBofA beat on earnings “like a boss,” Schorr wrote in a note. He cited solid core loan and deposit growth, strong investment banking, better card trends, flat core expenses and “even better” credit trends.“Issues in the quarter mainly centered on balance-sheet related dynamics,” he added. The bank may discuss on the call why asset sensitivity increased and what to expect from further rate cuts, he said.Credit Suisse, Susan Roth KatzkeBofA’s EPS beat was due to “better revenue generation and lower-than-forecast credit costs,” along with a 3 cent benefit from a lower-than-expected tax rate, Katzke wrote.She flagged 6% year-over-year average business unit loan growth; beats in FICC and equities trading and investment banking; and positive wealth management net flows. Credit costs were also lower than forecast, with a lower net charge off rate. “All eyes” were on net interest income, which beat with less net interest margin compression, she said.Wolfe Research, Steven ChubakKey highlights included net interest income, investment banking, trading, credit and costs -- “basically everything,” Chubak said.He expected shares to outperform, with a higher net interest income “jump off” and positive expense surprise likely to trigger upward revisions to estimates.KBW, Brian KleinhanzlKleinhanzl flagged the unchanged 2019 NII guidance and said, “loan growth can continue to be strong.” Earlier, he wrote that BofA overall “posted a broad-based beat with NII, provision, expenses, share count, and loan growth coming in better than expectations.”Here’s what Bloomberg Intelligence said:The “trading bar” for Morgan Stanley, which is due to report on Thursday, was raised as BofA joined a “sweep of beats,” analyst Alison Williams wrote.“Morgan Stanley’s trading is a focus with 3Q results, with declines expected for equities and fixed-income trading revenue vs. 3Q18. Its year-ago quarter generally fared better than the peer aggregate, and consensus expectations for the bank to modestly underperform barely changed overall trading across global peers this quarter. The largest U.S. competitors have broadly exceeded expectations, with a sweep of FICC beats, and aggregate equities close to in-line. BofA and Goldman bested equities estimates, while JPMorgan missed and Citi was close to in-line. Morgan Stanley is relatively more equities focused, with its overall revenue from trading share second only to Goldman Sachs.”(Updates shares in 1st and 2nd paragraphs. Adds comments from KBW.)To contact the reporter on this story: Felice Maranz in New York at fmaranz@bloomberg.netTo contact the editors responsible for this story: Catherine Larkin at, Jennifer Bissell-LinskFor more articles like this, please visit us at©2019 Bloomberg L.P.

  • Buy Maintained on Bank of America (BAC)
    Yahoo Finance

    Buy Maintained on Bank of America (BAC)

    On October 16, Bank of America (BAC) reported adjusted 3Q19 earnings of $0.75 per share, up from $0.66 a year earlier. Revenues were flat, as higher net interest income from loan growth and greater investment banking fees was offset by lower card fee income and trading revenues.

  • Bloomberg

    Bank of America’s Cloud Expansion Could ‘Save a Ton of Money,’ CEO Says

    (Bloomberg) -- Bank of America Corp. is moving deeper into the cloud.The Charlotte, North Carolina-based company’s internal cloud services have enabled it to cut the number servers it uses to 70,000 in 23 data centers, from 200,000 in 67 sites, Chief Executive Officer Brian Moynihan told analysts on a conference call Wednesday. The bulk of applications run on about 8,000 servers.“We are working with potential providers to take the next step, which is discrete data centers and resources to internal cloud, save a ton of money, then use that power to actually negotiate with third parties,” Moynihan said.While the bank considers the private cloud to be cheaper than using third parties, that’s likely to change, he said. A team run by Cathy Bessant, chief operations and technology officer, is vetting cloud vendors, particularly in the areas of security and data privacy.“We don’t need to own the hardware, we just need to find out who can provide it the right way,” Moynihan said. “We have to make sure that the external providers are safe, sound, leave the data just for us to use with our customers, don’t mix it with other peoples’ data, et cetera. And that discussion and negotiation goes on as we speak.”To contact the reporter on this story: Lananh Nguyen in New York at lnguyen35@bloomberg.netTo contact the editors responsible for this story: Michael J. Moore at, Dan Reichl, Josh FriedmanFor more articles like this, please visit us at©2019 Bloomberg L.P.

  • Bank of America puts investments over cost cuts as 'operating leverage' fades

    Bank of America puts investments over cost cuts as 'operating leverage' fades

    For the first time in nearly five years, Bank of America Corp did not rely on cost cuts to amplify profits – the latest sign of big U.S. banks prioritizing investments in their businesses over short-term gains. On Tuesday, Bank of America reported better-than-expected quarterly results, helped by loan growth, higher equities trading revenue and bigger fees from dealmaking and wealth management. The difference between those two figures, known as operating leverage, is watched closely on Wall Street as a barometer of how well a bank manages costs.

  • Abbott Labs, GM, MGM, Berkshire Hathaway, Intel: Stocks to Watch
    Yahoo Finance

    Abbott Labs, GM, MGM, Berkshire Hathaway, Intel: Stocks to Watch

    Abbott Labs, GM, MGM, Berkshire Hathaway and Intel are the companies to watch.

  • Bank of America beats profit estimates on surge in advisory, lending

    Bank of America beats profit estimates on surge in advisory, lending

    The lender's shares rose 3% as consumer banking, BofA's biggest business, showed strength in the face of worries over slowing economic growth and added to signs from JPMorgan and Citigroup that U.S. household finances remained healthy. "In a moderately growing economy, we focused on driving those things that are controllable," Chief Executive Brian Moynihan said.

  • Retail Sales Miss to -0.3%, Bank Earnings Mixed: BAC & BK

    Retail Sales Miss to -0.3%, Bank Earnings Mixed: BAC & BK

    -0.3% on the headline was the reverse of the consensus estimate +0.3%. This is the worst Retail Sales print since February.

  • Economic Data Deluge

    Economic Data Deluge

    Economic Data Deluge

  • Reuters - UK Focus

    US STOCKS-Wall Street on edge after Hong Kong protests bill

    Wall Street inched lower on Wednesday, as a congressional bill related to the Hong Kong protests stoked fears of more friction with China, even as another round of positive earnings reports underlined a solid start to third-quarter results. PNC Financial Services Group Inc and Bank of New York Mellon Corp also rose after better-than-expected earnings.

  • Bank of America’s Future Is Digital, and It’s Now

    Bank of America’s Future Is Digital, and It’s Now

    (Bloomberg Opinion) -- Bank of America Corp. likes to brag about its online and mobile banking capabilities. Just as it did at this time last year, the bank on Wednesday trumpeted its “leadership in high-tech” in its third-quarter earnings news release and boasted that it’s “No. 1 in mobile banking, online banking and digital sales functionality,” citing accolades from J.D. Power, Javelin and Dynatrace.It’s true that the company’s number of active digital banking users has climbed 5% over the past year to 30 million and the number of active mobile users has increased by almost 11% to 28.7 million. Logins are up, the share of consumer mortgage applications coming from digital has doubled in the past year, and, at a time when banks are increasingly sensitive about costs, Bank of America has trimmed its number of branches by 1.9% to 4,302.Fairly or unfairly, though, Bank of America is going to be compared with JPMorgan Chase & Co., which reported its third-quarter earnings 24 hours earlier. They are the two largest U.S. commercial banks, after all. And in the digital space, the hard numbers show JPMorgan is outpacing Bank of America.Active digital customers? JPMorgan increased that number by 6.5% year-over-year, ahead of Bank of America’s 5%. Active mobile customers jumped 12.2% compared with 10.8%. JPMorgan even cut back on physical branches at a slightly faster clip. Both banks highlighted the increased use of the Zelle digital payment service, which they own along with other retail institutions like Citigroup Inc. and Wells Fargo & Co. None of this is to say Bank of America’s earnings were disappointing. To the contrary, its resilience on just about all fronts was nothing short of impressive. It scored the biggest jump in investment-banking fees on Wall Street, its advisory fees surpassed that of rivals, and both trading revenue and net interest income beat estimates. That all showed up in its share price, which soared more than 2% in an hour after the earnings release. And that was on top of a surge Tuesday on news that Warren Buffett’s Berkshire Hathaway Inc. is seeking permission from the Federal Reserve to potentially increase its stake in the bank to more than 10%.Bank of America ought to use this widespread success and its strong market position among consumer banks to continue to invest in its digital and mobile capabilities to keep pace with JPMorgan and stay ahead of other peers. It’s hardly a stereotype to say that younger adults, millennials and Generation Z are consistently on their mobile phones and demand convenience from the companies they use. It’s what they know — filling out a deposit slip at a bank branch is most likely as foreign to some as sending a fax.CEO Brian Moynihan seems to understand this. In a statement about the earnings, he said: “In a moderately growing economy, we focused on driving those things that are controllable. We made continued strong investments in our capabilities to serve customers, more relationship management teammates, more and refurbished branches and offices, and more digital capabilities.”When every bank is facing questions about the Fed cutting interest rates and the global economy potentially slowing down, focusing on aspects of the core consumer business makes a lot of sense. As Chief Financial Officer Paul Donofrio noted on the earnings call, investing in a strong digital platform doesn’t just provide “ease of use, but also efficiency.” For example, he noted, 13% of traffic at its financial centers now comes from scheduled appointments, which allows the company to better staff those locations. Corporate treasurers are also looking for the same kind of convenience, Donofrio added.  In JPMorgan’s second-quarter earnings call, CEO Jamie Dimon quipped that “fintech, of course, is always going to try to eat your lunch, and I think that’s good, that’s called American capitalism, and we have to stay on our toes to compete.” The same goes for competition among the biggest U.S. banks. Even in 2019, digital and mobile banking is still in a formative period.Bank of America is in an enviable position along with JPMorgan. They both have taken big leaps forward in mobile and digital services and have the size to heavily invest now to ensure efficiency and security later. That’s the path Bank of America needs to take if it wants to continue to advertise its “No. 1” ranking in earnings reports to come.To contact the author of this story: Brian Chappatta at bchappatta1@bloomberg.netTo contact the editor responsible for this story: Daniel Niemi at dniemi1@bloomberg.netThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Brian Chappatta is a Bloomberg Opinion columnist covering debt markets. He previously covered bonds for Bloomberg News. He is also a CFA charterholder.For more articles like this, please visit us at©2019 Bloomberg L.P.

  • BofA's (BAC) Q3 Earnings Top on Trading, Investment Banking

    BofA's (BAC) Q3 Earnings Top on Trading, Investment Banking

    Impressive trading and investment banking performance, and modest loan growth support BofA's (BAC) Q3 earnings.

  • Berkshire Hathaway: Will Bank of America Be Like Apple?
    Market Realist

    Berkshire Hathaway: Will Bank of America Be Like Apple?

    Berkshire Hathaway approached the Fed to increase its stake in Bank of America. The company added more Bank of America shares in the second quarter.

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