Bank of America 2Q profits boosted by tax law, higher rates | News & Observer

collected by :Irax John

The bank also benefited from the recent rise in interest rates, allowing it to charge more for customers to borrow. There's a concern among investors about a recent development in the bond market known as a "flattening" of the yield curve. A flattening yield curve means short-term interest rates are rising faster than long-term rates. A flattening yield curve can also be a precursor for what's known as an inverted yield curve, which is when investors pay less for long-term rates and more for short-term rates. An inverted yield curve has historically been a reliable indicator of an economic downturn or impending recession.

Why Bank of America branches are disappearing

Bank of America's vast network of branches fell to 4,411 at the end of June, compared with 4,542 a year ago. Wells Fargo still has 5,751 branches, but the bank shut more than 200 branches last year. Bank of America plans to open more than 500 new branches across the United States over the next four years. A Bank of America spokeswoman said, however, that the plan to build new branches and renovate others may not increase the company's overall branch count. In other words, Bank of America may continue to shut more branches than it opens.

Buy Cisco on the dip because the Amazon threat worries are 'overdone': Bank of America

as mentioned in The decline in Cisco Systems shares last week is a good buying opportunity, according to Bank of America Merrill Lynch. The firm reiterated its buy rating for Cisco Systems shares, downplaying the competitive threat from Amazon in the switch business. The "negative reaction to Amazon switching threat overdone," analyst Tal Liani said in a note to clients Monday. We believe there is only a small part of the data center switching market that can utilize true white box solutions. Liani reiterated his $53 price target for Cisco shares, representing 27 percent upside to Friday's close.