Investors were just aching for an excuse to buy stocks this morning. Absent a real excuse, like aggressive action by the European Central bank or a sharp increase in productivity by American businesses, investors are simply buying stocks anyway. And they are currently emptying their pockets to grab a piece of Bank of America (BAC), which was recently trading 7% higher.
The Dow was recently up about 200 points and the S&P 500 was up 22 points. Bank of America is leading the index higher, breaking out of a tight range around $7 per share that it has been trading in for the past two weeks. Citigroup (C) rose 4.7%. Evercore analyst Andrew Marquardt recently pointed out that BAC has much less international exposure than some competitors.
News out of Europe is mixed, but the market appears to be hanging its hat on the notion that policymakers are at least considering more aggressive actions. ECB President Mario Draghi said that some members of the ECB wanted to cut interest rates below the current 1%, although they were eventually outvoted.
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