Bank of America's Glimmer of Hope

Despite a 41% drop in profit for the second quarter, an improved outlook from Bank of America Corp. furthered hopes among investors that major U.S. banks will successfully manage through losses from the continuing mortgage crisis and rebound once the economy begins to recover.

Following better-than-expected results last week from banks including Citigroup Inc., J.P. Morgan Chase & Co., and Wells Fargo & Co., Bank of America offered relief of its own by posting strong income from its investment-banking businesses, earnings from interest and healthy growth in retail deposits.

The Charlotte, N.C., bank also vowed to protect its dividend payout ...