US Stock Likely To Open Higher Ahead of Trump's Inaugration: All 11 Sectors To Report Growing Profits In 2025, Says Analyst
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 17 2025
0mins
Source: Benzinga
Market Performance: U.S. stock futures are trading higher, recovering from previous losses, with major indices showing gains and a potential strong weekly performance for the S&P 500 since November. However, the tech sector faced declines, particularly with Apple and Nvidia shares.
Economic Insights: Analysts predict that the upcoming Federal Reserve meeting will likely maintain current interest rates, while corporate earnings in 2025 are expected to show growth across all sectors for the first time since 2018, indicating a potentially robust market ahead.
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Analyst Views on BAC
Wall Street analysts forecast BAC stock price to rise
19 Analyst Rating
15 Buy
4 Hold
0 Sell
Strong Buy
Current: 52.520
Low
55.00
Averages
61.64
High
71.00
Current: 52.520
Low
55.00
Averages
61.64
High
71.00
About BAC
Bank of America Corporation is a bank holding company and a financial holding company. Its segments include Consumer Banking, Global Wealth & Investment Management (GWIM), Global Banking and Global Markets. Consumer Banking segment offers a range of credit, banking and investment products and services to consumers and small businesses. The GWIM includes two businesses: Merrill Wealth Management, which provides tailored solutions to meet clients' needs through a full set of investment management, brokerage, banking and retirement products and Bank of America Private Bank, which provides comprehensive wealth management solutions. Global Banking segment provides a range of lending-related products and services, integrated working capital management and treasury solutions, and underwriting and advisory services. Global Markets segment offers sales and trading services and research services to institutional clients across fixed-income, credit, currency, commodity, and equity businesses.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Banking Services: Most commercial banks, including JPMorgan Chase, Bank of America, and Capital One, are closed today following the Federal Reserve's holiday schedule, although online banking and ATM services remain operational, with transactions likely delayed until the next business day.
- Postal Service Suspension: The U.S. Postal Service has suspended regular mail delivery and closed all retail post office locations today, while private carriers continue to operate, highlighting the operational differences in public services during holidays.
- Retail Promotions: Many department stores are leveraging Presidents' Day for significant sales, particularly in furniture and appliances, aiming to attract consumers and boost sales, reflecting retailers' strategic approaches during holiday periods.
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- IPO Market Revival: Solomon noted that IPO discussions are heating up, with U.S. IPO proceeds potentially reaching $160 billion in 2026, a significant increase from $44 billion in 2025, reflecting strong demand and confidence in large transactions.
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- Market Reaction: Although Kraft Heinz's stock initially fell upon the announcement of the separation pause, it quickly rebounded to close the week with a 0.7% gain, indicating market recognition and confidence in the new strategy.
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- ADP Stock Potential: Automatic Data Processing (ADP) has seen a 25% decline in its stock price over the past six months, currently trading at a forward P/E of only 21 times; if market sentiment improves, the stock could rerate to 25-30 times forward earnings, enhancing investor confidence and improving valuation.
- American Water Works Merger Outlook: American Water Works (AWK) faces pressure from high interest rates and regulatory scrutiny, and while its merger with Essential Utilities has shareholder approval, it still requires regulatory clearance; if successful, it could help achieve long-term earnings and dividend growth targets of 7%-9%.
- PayPal Management Change: Following a CEO change, PayPal's stock has dropped nearly 21% due to weak earnings and market confidence; currently trading at less than 8 times forward earnings, a strategic alternative from the new management team could catalyze a rebound in shares.
- AI Impact Market Concerns: The market's fears regarding the potential disruptive effects of generative AI on various sectors have led to sell-offs in non-tech stocks, although this bearish sentiment may be overstated, necessitating close attention to the fundamental changes in affected companies.
See More
Overview of U.S. Markets Closure on Presidents' Day
- Market Closure: The New York Stock Exchange and Nasdaq are closed today in observance of Presidents' Day, with U.S. bond markets also fully shut down, indicating the holiday's direct impact on financial operations, with trading resuming on February 17.
- Banking Services: Most commercial banks, including JPMorgan Chase, Bank of America, and Capital One, are closed today following the Federal Reserve's holiday schedule, although online banking and ATM services remain operational, with transactions likely delayed until the next business day.
- Postal Service Suspension: The U.S. Postal Service has suspended regular mail delivery and closed all retail post office locations today, while private carriers continue to operate, highlighting the operational differences in public services during holidays.
- Retail Promotions: Many department stores are leveraging Presidents' Day for significant sales, particularly in furniture and appliances, aiming to attract consumers and boost sales, reflecting retailers' strategic approaches during holiday periods.
See More
Analysis of Household Financial Conditions
- Rising Delinquency Rates: The New York Fed's report indicates that early delinquency in mortgage and student loans increased in Q4 2023, reflecting ongoing effects from the resumption of payment reporting post-pandemic, although overall household financial health is still considered good.
- Total Delinquent Debt Rebounds: As of Q4 2023, the total amount of delinquent debt reached 4.8%, the highest since 2017, yet this level remains significantly lower than the nearly 10% seen in 2009 and 2010, illustrating a normalization of household finances.
- Sustained Consumer Spending: Despite deteriorating household financial metrics, personal consumption expenditures continue to hit record levels, indicating that American consumers maintain strong spending capabilities, which reflects relative financial health.
- Stable Debt Service Payment Ratio: Although the ratio of household debt service payments to disposable income has been deteriorating over the years, it remains strong in absolute terms, demonstrating households' continued ability to manage debt relative to their income.
See More
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- Optimistic Economic Outlook: Goldman Sachs CEO David Solomon expressed in a CNBC interview that the economic backdrop for 2026 is “quite good,” highlighting fiscal support and AI-driven capital investments as key drivers for growth, indicating a resurgence in business activity and investment willingness.
- IPO Market Revival: Solomon noted that IPO discussions are heating up, with U.S. IPO proceeds potentially reaching $160 billion in 2026, a significant increase from $44 billion in 2025, reflecting strong demand and confidence in large transactions.
- Strong Performance from Big Banks: Goldman Sachs' latest earnings report revealed an EPS of $14.01, surpassing expectations despite the impact of exiting the Apple Card business, demonstrating the banks' ability to manage credit risk and maintain margins effectively.
- Increased M&A Activity: Goldman Sachs led the global M&A market with advisory transactions totaling $1.48 trillion in 2025, earning $4.6 billion in fees, indicating a renewed interest in strategic deals among corporations, with expectations for more large transactions in the near future.
See More
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- Tech Stock Pullback: The three major U.S. stock averages declined this week due to fears surrounding rapid AI developments, with software giants like Netflix and Fox dropping 6.5% and 11.6% respectively, indicating market concerns over the profitability of streaming platforms.
- Oversold Status: According to CNBC Pro, Fox Class A shares have a 14-day RSI of nearly 18.6, while Netflix's RSI is about 24, suggesting these stocks are technically oversold and may rebound in the near term.
- DoorDash Performance: DoorDash shares, with an RSI of 16.45, fell over 12% this week; however, Bank of America reiterated its buy rating, suggesting that a strong first-quarter outlook could serve as a clearing event, reflecting confidence in its future performance.
- Overbought Real Estate Stocks: Equinix and Texas Pacific Land are considered overbought with RSI levels around 85 and 82, respectively, with Equinix rising 12.7% this week after providing strong first-quarter guidance and increasing its dividend for the 11th consecutive year, highlighting robust demand for data centers.
See More
Buffett Endorses Kraft Heinz CEO's Strategic Shift
- Strategic Support: Kraft Heinz's new CEO Steve Cahillane announced a pause on the planned separation after five weeks in office, indicating that the challenges are manageable and opportunities exceed expectations; this decision received backing from Buffett and Berkshire Hathaway, aiming to enhance the company's competitiveness and customer service capabilities.
- Shareholder Interest Preservation: Berkshire holds a 27.5% stake in Kraft Heinz, currently valued at approximately $8.1 billion, and the pause on the separation helps protect shareholder interests by avoiding potential share sales, reflecting Buffett's confidence in the company's future.
- Market Reaction: Although Kraft Heinz's stock initially fell upon the announcement of the separation pause, it quickly rebounded to close the week with a 0.7% gain, indicating market recognition and confidence in the new strategy.
- Future Outlook: Berkshire is expected to release its latest portfolio snapshot next week, with investors keenly watching whether it continues to reduce its positions in Apple and Bank of America, as well as developments regarding new portfolio manager Todd Combs, which will influence market expectations for Berkshire's future performance.
See More
