Bright Spot for U.S. Bank Stocks Seen in New-Home Sales
Bank stocks look like a more rewarding choice than bonds for U.S. investors because low interest rates “are stirring animal spirits” in the housing market, according to Michael Hartnett, chief investment strategist at Bank of America Corp.’s Merrill Lynch unit. In a report Friday, Hartnett showed shares of banks have done relatively poorly even as sales of new homes have climbed. June’s annual sales rate of 592,000 houses was the highest since February 2008.