P.M. Buzzers: Banks Fall on New Capital Rules, Facebook Still Fumbling
After closing nearly 3 percent lower in regular trading, Bank of America (NYSE:BAC) shares continued to edge lower in late trading. In the final hour of trading, the Federal Reserve unveiled a plan that places tougher capital rules on banks with at least $500 million in assets. The new rules require banks to maintain a level of common equity equal to 4.5 percent of their risk-weighted assets, plus another 2.5 percent for a capital conservation buffer. Bank of America was the worst performing company in the Dow Jones Industrial Average. Goldman Sachs (NYSE:GS) and Citigroup (NYSE:C) also closed lower on Thursday.
Quiksilver Inc. (NYSE:ZQK) shares bounced .82 percent in late trading. The company narrowed its loss in the second-quarter to $5.1 million, compared to a loss of $83.3 million a year earlier. Robert B. McKnight, Jr., Chairman of the Board, Chief Executive Officer and President of Quiksilver, Inc., commented, “I’m proud of the Quiksilver team’s performance in the second quarter amid inconsistent economic conditions around the world. We continue to see examples of solid growth in our emerging markets while some established markets, particularly in Europe, have been impacted by regional economic uncertainty. Especially against this backdrop, we’re pleased to see that the improvements we’ve made to our retail presence continue to drive positive comparable store sales in all three regions.”
Don’t Miss: Time to Buy Facebook Stock…Or Wait it Out?
Facebook (NASDAQ:FB) shares continued to decline in extended trading after close down 1.86 percent. The social-media giant is still having trouble building momentum and is one of the most popular short plays in the market. However, JMP Securities recently initiated coverage on Facebook with a Market Outperform rating and a price target of $37. “Valuation appears high but Facebook has plenty of opportunities to monetize its vast user base,” analyst Mark Harding wrote.
RF Micro Devices Inc. (NASDAQ:RFMD) shares edged higher after the closing bell. The company received an upgrade from Neutral to Buy from Davenport, citing strong demand for the chip maker’s products. RFMD is a top supplier to smartphone companies such as Samsung and Apple Inc. (NASDAQ:AAPL).
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