USB - Bank Stocks Are Falling After Bank of America Posts 40% Profit Drop
Shares of Bank of America are down more than 6% today, following first-quarter earnings that fell 42% after the bank took much larger-than-expected credit provisions to prepare for the economic fallout of the COVID-19 pandemic. As a result of Bank of America's big moves -- as well as those of other megabanks like JPMorgan Chase, which also reported earnings -- to get ahead of the economic cycle that's expected to cause millions of people to fall behind on their debts, investors are selling hard and fast out of other bank stocks today.
As of 11:45 p.m. EDT. Data Source: YCharts.
Investor sentiment for the banking industry is largely set by big-bank earnings. And with Bank of America, JPMorgan, and others reporting in the past two days and all taking bigger-than-expected credit provisions, the sentiment for the industry has turned decidedly negative.