CHARLOTTE, North Carolina (Reuters) – Bank of America Corp (BAC.N) shares rose as much as 10 percent in morning trading on Wednesday after analysts said the bank's capital needs were not as dire as some estimates.
The shares rose to $6.94 in early trading after finishing at $6.30 on Tuesday, their lowest close in two and a half years.
Investors and analysts said the Wednesday rebound was a reaction to the stock dropping 32 percent since the beginning of August.
"The stock is not out of the woods but the selling has been grossly overdone," said Marshall Front, chairman of Chicago-based Front Barnett Associates LLC.
Front's firm owns Bank of America shares and manages $600 million in assets.
On Wednesday, bank analyst Meredith Whitney and Raymond James bank analyst Anthony Polini said Bank of America's capital needs were not as pressing as some have estimated.
On Tuesday, former analyst Henry Blodget estimated the bank needed as much as $200 billion in additional capital. Bank of America said Blodget was wrong.
Shares of the largest U.S. bank by assets have plunged in recent weeks amid fears the bank still faces billions in costs tied to its large home mortgage portfolio.
(Reporting by Joe Rauch; editing by John Wallace)
SAN FRANCISCO (Reuters) – Google Inc will pay $500 million to settle government charges that it showed ads for pharmacies that operate illegally, regulators are expected to announce on Wednesday, according to a report in the New York Times.
The investigation by the United States Department of Justice was revealed by Google in May, when the company disclosed in a regulatory filing that it had set aside $500 million for a potential settlement of a federal investigation into its advertising practices.
Media reports at the time said the investigation concerned ads for online pharmacies that sold counterfeit drugs or that sold drugs to buyers who didn't have prescriptions.
Google did not immediately return a request for comment.
The United States Attorney's office in Rhode Island, which has led the investigation, is expected to make the announcement at a press conference on Wednesday, according to the New York Times.
(Reporting by Alexei Oreskovic; Editing by Derek Caney)
THE PERFORMANCE: Luxury homebuilder Toll Brothers Inc. reported third-quarter net income of 25 cents per share on revenue of $394.3 million. Analysts surveyed by FactSet predicted earnings of 4 cents per share on revenue of $409.2 million.
THE DETAILS: Home deliveries slipped 14 percent in the quarter, while net signed contracts climbed 2 percent. Backlog increased 8 percent in dollars, and Toll Brothers' cancellation rate rose to 7.4 percent from 6.2 percent.
DELIVERIES REVISED: The company now expects to deliver between 2,475 and 2,675 homes during the year. Its previous outlook called for deliveries of 2,300 to 2,800 homes.