Chart of the Day: Bank of America Needs a Lifeline

With higher rates comes less lending. Will that hit the big bank’s earnings next week?

Bob Lang·Oct 6, 2026, 9:45 AM EDT

The struggles for the banks and financials have been well documented. While some believe net interest margin (NIM) will improve for financial stocks like Bank of America (BAC), the consensus believes lower rates are much more advantageous.

Banks are in the business of lending, and if rates go up then the cost of borrrowing rises, too. There is a tipping point where lending just shuts down. We’ll hear from BAC next week if higher rates have become a problem and where they believe rates will be going in the near future.

But as for BAC, this bank knows how to make money in any environment. The recent slide in the stock price is a bit of a concern though — heavy volume selling in September means there was distribution (big institutional selling). That can be a problem down the road, the lack of commitment by investors means the stock is vulnerable to more downside.

However, earnings are where they are now, where the rubber meets the road. All indicators are bearish, which is not a surprise. Yet, the price action is somewhat better the last few sessions, trying to plant a
“flag” in the $54 level. Money flow is weak and momentum has left the building. Let’s watch the for the $56 level and then some followthrough, we might have something to work with.

We like BAC in TheStreet Pro Portfolio and rate it a two, stock pile on pullbacks.

More Pro Portfolio

At the time of publication, TheStreet Pro Portfolio was long BAC.

By Bob Lang