Shares of Bank of America are soaring today on news of Morgan Stanley’s downgrade of $BAC to “Equal weight” from “Overweight”, whatever that means. You have to laugh at this kind of stuff right?
I suppose, that in theory, this is negative news for $BAC stock. When a stock can’t go down on bad news, I take it as good news.
I realize there is a ton of news coming out of Europe that has an impact on all stocks, not just Bank of America. But on news of the downgrade, $BAC is up over 7% as of this writing. This means that today, it is outperforming $XLF $WFC $USB $BK among many others. Underperforming, however, relative to Morgan Stanley ($MS) today, which is up 15%.
All joking aside, I have to take this action in Financials as constructive. Big Gap up today in $XLF out of this range. A little back & filling here is welcome.