New York, Jan 7, 2026, 13:06 ET — Regular session
- BAC shares fall about 2% after Wolfe Research cuts its rating
- Bank of America set to report quarterly results on Jan. 14
- Traders eye Friday’s U.S. payrolls report for fresh rate clues
Bank of America Corporation shares fell nearly 2% on Wednesday after Wolfe Research downgraded the lender to “peer perform,” pointing to limited upside and a tougher setup for 2026 estimates. The stock was down 2.0% at $56.13 in midday trading. Investing.com UK
The Wolfe call lands as big banks head into earnings season with valuations already elevated after last year’s run. “We are taking some chips off the table,” Wolfe analyst Steven Chubak wrote, as investors brace for results from the largest U.S. lenders next week. Bloomberg.com
JPMorgan Chase is set to kick off bank earnings on Jan. 13, with Bank of America, Citigroup and Wells Fargo due a day later. “The fourth quarter shaped up to be a perfect recipe … for investment banking revenues,” said Stephen Biggar, a banking analyst at Argus Research, as dealmaking and trading activity improved. Reuters
Bank of America said it will report fourth-quarter 2025 results on Wednesday, Jan. 14, releasing the numbers at about 6:45 a.m. ET, followed by an investor call at 8:30 a.m. ET. The bank said supporting materials will be posted to its investor relations site, with a results 8-K also available through the SEC.
In a separate filing on Tuesday, the bank disclosed an accounting change for certain tax-related equity investments tied to affordable housing and renewable energy credits. Bank of America said the shift is mainly a reclassification between income statement lines, but it lowered retained earnings by $1.7 billion as of Sept. 30, 2025 and would have reduced its common equity tier 1 ratio — a key bank capital metric — by an estimated 13 basis points at that date.
Bank stocks also softened more broadly as investors digested weaker-than-expected U.S. labor reports and locked in gains after a three-session rally, while the wider market held near record levels. “The economic news sort of fueled a little bit of profit taking,” said Robert Pavlik, senior portfolio manager at Dakota Wealth, with the government’s December payrolls report due on Friday. Reuters
Beyond earnings, rate expectations remain the swing factor for Bank of America and its peers. Net interest income — what a bank earns on loans minus what it pays on deposits — can shift quickly when the curve moves, and the Fed’s next policy meeting is scheduled for Jan. 27-28.
The risk for bulls is that inflation and wages run hot enough to delay cuts, keeping funding costs higher for longer or cooling loan demand. Richmond Fed President Thomas Barkin said further rate moves will need to be “finely tuned” as policymakers balance inflation that remains above target against a labor market that has started to soften. Reuters
Next up: Friday’s payrolls data, then the opening wave of bank earnings starting Jan. 13, with Bank of America reporting on Jan. 14.
