Bank Of America Stock Is Falling: What's Going On?

Bank Of America Corp BAC shares are trading lower Thursday alongside the broader market. After the close on Wednesday, the bank announced plans to to increase its dividend by 9%.

What To Know: The overall market is facing selling pressure. Thursday's jobs number showed that the labor market remains tight, which raises the likelihood of more interest rate hikes from the Fed this year. 

The ADP National Employment Report showed that U.S. private employers added 497,000 jobs in June, well above estimates of 220,000.

Following the print, chances for a 0.25% hike in July climbed to 92.4%, per the CME FedWatch tool. Now all eyes turn to the non-farm payrolls report, which is due Friday morning.

Related Link: ADP Job Growth Soars By 500K, Jobless Claims Ticks Higher: Traders Raise Fed Hike Bets

On Wednesday, BofA said it plans to increase its quarterly dividend from 22 cents per share to 24 cents per share beginning in the third quarter. The dividend increase still needs to be approved by the company's board.

BofA is set to report its second-quarter financial results before the market opens on July 18. The bank is expected to report earnings of 85 cents per share on quarterly revenue of $25.16 billion, according to estimates from Benzinga Pro.

BAC Price Action: BofA shares were down 2.53% at $28.35 at the time of writing, according to Benzinga Pro.

Photo: Mike Mozart from Flickr.