Two Ways To Play: Bank of America Emerges from TARP
Strengthen your portfolio in good times and bad.
BAC emerges from TARP
Bank of America (BAC) announced today that it will repay the entire $45 billion investment provided by US taxpayers under the Troubled Asset Relief Program (TARP).
In a press release, Bank of America said it has already paid $2.54 billion in dividends to the US Treasury to date and the move will save the company an estimated $3.6 billion in annual dividend costs.
It's the latest in a series of steps the bank has done to reduce its reliance on the government. Other actions include paying the US government $425 million to terminate a term sheet that would have guaranteed up to $118 billion in assets, as well as exiting a number of other government bailout programs this year. Shares of Bank of America are up over 4% in the premarket.
From the Bull Pen: There's a bit of resistance in the near term for Bank of America near $16.50. But it likely won't hold especially when taking a longer-term view. Those bullish can set a sell stop below recent lows (near $15.20).
From the Bear Cave: Bears can consider a downside play in bonds. Consider the Ultrashort 20+ treasury ETF (TBT). A sell stop can be set below recent lows ($44.30).
For more ways to play and other trading ideas from more than 30 top market pros, take a free trial to our Buzz & Banter.
A Quick Check around the World
Asian trading closed with the Nikkei 3.84%, India 0.09%, Hang Seng 1.19%, Shanghai -0.16%, and Taiwan 0.09%.
Across the pond, we see the FTSE 0.40%, CAC 0.56%, DAX 0.58%
As of 8:15 AM EST, S&P Futures are trading +5.00 to 1113.25. Nasdaq futures are +3.000 to 1794.50.
A Look at Commodities
Over in commodities, crude oil is +0.61 to 77.21 while gold is +6.000 to 1219.00 this morning. Silver is -18.5 to 1911.0 and copper -1.250 to 321.90.
The dollar Index is -0.2350 to 74.4700.
On the Radar
08:30 Initial Claims 483k. cons.
08:30 Continuing Claims
08:30 Productivity 8.5% cons.
08:30 Employment Cost Index
10:00 ISM Services 51.4 cons.
Click here for the full trading radar.
Good luck today!
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.
Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
Daily Recap Newsletter