Bank of America CEO Sparks Bank Stock Selloff With One Small Word

Bank of America CEO Brian Moynihan triggered a sharp selloff in the bank's shares Monday after telling a conference that sales and trading revenue for the fiscal third quarter will be "flat" compared to the prior year.

The guidance marks a notable deceleration for a business line that has been a key earnings driver across Wall Street. Moynihan's single-word characterization—"flat"—was enough to send the stock lower during Monday's session, as traders recalibrated expectations for the bank's trading desk performance heading into quarterly results.

Sales and trading revenue encompasses fixed income, currencies, and commodities trading as well as equities. A flat reading suggests the bank is not benefiting from volatility or client activity to the same degree as in the year-ago period, when market conditions were more favorable for dealer activity.

The remark came during a public conference appearance and represented the first quantitative signal from management on third-quarter trading performance. Bank stocks are sensitive to trading revenue guidance, as the segment can swing quarterly results and is closely watched by analysts as a barometer of capital markets health.