Stock Market Today, Jan. 14: Bank of America Falls After Strong Earnings Meet Softer Net Interest Income Outlook

Core Viewpoint - Bank of America reported strong Q4 results but faced a decline in stock price due to concerns over net interest income outlook and sector pressures [1][2]. Group 1: Financial Performance - Bank of America closed at $52.48, down 3.78% after the Q4 results [1]. - The bank's Q4 results exceeded expectations, showing solid revenue and trading performance, but provided tempered guidance for net interest income in 2026 [2]. - Net interest income is expected to rise between 5% and 7% this year, indicating solid performance in the lending segment [4]. Group 2: Market Reaction - Trading volume for Bank of America reached 84.1 million shares, which is 124% above its three-month average of 37.6 million shares [1]. - The S&P 500 and Nasdaq Composite fell by 0.51% and 1.00%, respectively, reflecting broader market pressures [3]. - Other banks, such as JPMorgan Chase and Wells Fargo, also experienced declines, indicating investor concerns about big-bank earnings quality and net interest margins [3]. Group 3: Revenue Insights - The bank's equities trading revenue rose by 23%, surpassing estimates, although shares had already increased by about 17% in the preceding six months [4]. - Growing expenses are raising concerns about future profitability despite the positive revenue growth in equities trading [4]. Group 4: Regulatory and Economic Environment - Investors are concerned about regulatory uncertainty and future interest rates, contributing to the selling pressure on bank shares [5].