Shares of Bank of America Corp. (NYSE:BAC) are trading lower Monday afternoon as cautionary guidance from Chief Executive Officer Brian Moynihan regarding third-quarter trading performance and dealmaking fees weighed on major financial equities.

• Bank of America shares are retreating from recent levels. Why is BAC stock dropping?

Moynihan Signals Flat Sales & Trading and Muted Deal Fees at Conference

Speaking at an industry conference on Monday, Moynihan informed investors that Bank of America’s third-quarter sales and trading revenue is expected to come in roughly flat year-over-year. Furthermore, Moynihan projected that investment banking fees for the quarter will land between $1.6 billion and $1.8 billion.

The $1.6 billion to $1.8 billion fee guidance fell noticeably short of Wall Street consensus estimates near $2 billion, representing a year-over-year decline of more than 10%.

Additionally, the flat sales and trading outlook marks a sharp deceleration from the second quarter’s 33% revenue surge, potentially signaling that institutional client activity is normalizing faster than anticipated.

The softer investment banking outlook and flat market-making guidance prompted a broader pullback across large-cap financial equities Monday afternoon.

BAC Shares Drop Monday Afternoon

BAC Price Action: Bank of America shares were down 5.95% at $58.96 at the time of publication on Monday, according to Benzinga Pro data.

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