What Prompted Shares of Bank of America to Hit a New 52-Week High?
The Dow Jones Industrial Average owes Bank of America (NYSE:BAC) some thanks. The nation’s second-largest bank soared to a new 52-week high on Tuesday — hitting $12.34 per share before closing ten cents down — and pushed the blue-chip average to within 1 percent of its all-time record close of 14,164.53, which was reached on October 9, 2007.
It may seem strange that Bank of America made such gains, especially since the company has experienced a one-month bear market to start the year. The bank’s stock received no help from the lackluster earnings report it released in mid-January; Bank of America’s fourth-quarter profit was pulled down 63 percent due to billions of dollars worth of charges related to the bank’s settlement with Fannie Mae (FNMA.OB) and other mortgage-related lawsuits.
But an upbeat report from the consumer credit company TransUnion — which showed that fewer Americans are falling behind in their mortgage payments — could have contributed to Bank of America’s gains.