Bank of America Will Eliminate 4,000 Mortgage Jobs and 2 Other Hot Stocks to Watch
Bank of America Corp. (NYSE:BAC): Current price $14.22
Late Thursday, BofA announced that it was cutting as many as 4,000 mortgage jobs, while fewer borrowers refinance, and also fewer home loans go awry. These layoffs mark the most recent series of job cuts at the big banks, attributed to rising mortgage rates stalling demand for refinancing home loans. At Bank of America, some 1,200 employees were advised this week that their positions will be terminated, the majority being full-time workers in the unit that processes new mortgages, according to a spokesman, who added that prior to the end of December, the bank expects to cut another 2,800 jobs in the collections division.
Sirius XM Radio Inc. (NASDAQ:SIRI): Current price $3.70
Shares of the satellite radio firm Sirius XM are down by about 4.5 percent Friday after Goldman Sachs downgraded the stock earlier in the day. Analyst Matthew Niknam wrote that before the stock market opened Friday, Sirius’ shares only had to move up by 9 percent to equal Goldman’s price target of $4.25, but as of this writing, they are at $3.72. Niknam advised investors that they should wait for a more attractive entry point before purchasing the stock. The analyst also mentioned that the company’s revenue was below expectations for the third quarter, blaming the miss on lower-than-anticipated average revenue per user.
Express Scripts Holding Co. (NASDAQ:ESRX): Current price $61.39
The pharmacy benefit manager Express Scripts on Thursday posted higher net earnings for the third quarter, but said that claims volume had fallen by 9 percent. Analyst Vishnu Lekra at Morningstar remarked that, “They had a pretty good quarter results were in line.” He also said that some investors could have been disappointed as to the drop in claims but that the slump had been expected after one of the firm’s larger health insurer clients elected to take its business in-house. Shares were down by 3.7 percent before noon Eastern Time.