Wells Fargo & Co (WFC), Citigroup Inc (C), JPMorgan Chase & Co. (JPM), Bank of America Corp (BAC): 6 Announcements Bank Investors Must Watch Next Week

Thursday

Household debt service and financial obligations ratios: This is a quarterly calculation from the Fed that looks at the average household’s ability to pay its debts and financial obligations. This information gives investors a good sense of how households are managing their spending, as well as the ability to take on more debt — which may provide future business for the nation’s banks. It may also provide an opportunity to spot trouble. Foreclosures are on the rise again, with Bank of America Corp (NYSE:BAC) wielding the biggest load of bad loans, creating more trouble for the recovering bank.

Friday

Consumer credit: Investors can use this data point as an overall indication of how consumers are using their available credit. Combined with Thursday’s debt ratios, we can get a clear picture of current economic conditions as they apply to consumer spending. Using too little credit can indicate poor economic conditions, while too much credit can point to future reductions in purchases because of higher debt-payment requirements.

Fool on!
A Foolish investor knows that no single news blip will have all the information needed to assess a stock, but too much information can muddle a decision just as easily. As we move through the week, be sure to pick and choose which data points best help or hurt your stock picks. And as always, you can learn more by logging on to Fool.com.

If you think Bank of America Corp (NYSE:BAC)’s stock moved as much as it could when it doubled in 2012, think again. Though it still has significant challenges still ahead, this week’s results of the stress test could be the catalyst for Bank of America’s stock resurgence. It’s critical to have a solid understanding of this megabank before adding it to your portfolio, regardless of the stress-test results.

The article 6 Announcements Bank Investors Must Watch Next Week originally appeared on Fool.com is written by Jessica Alling.

Fool contributor Jessica Alling has no position in any stocks mentioned — you can contact her here. The Motley Fool recommends Wells Fargo and owns shares of Bank of America, Citigroup, JPMorgan Chase, and Wells Fargo.

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