U.S. bank stocks fell in morning trading on Tuesday in a broader market decline, as investors awaited clarity on whether the Trump administration's January 20 deadline to implement a 10% cap on credit... ...

Group 1 - The President has proposed a 10% cap on credit card fees to assist Americans in managing their credit card costs [1] - This initiative aims to benefit lower and middle-class workers by promoting financial independence through better management of credit card expenses [1] Group 2 - The article emphasizes the importance of quality dividend-paying stocks for long-term investment strategies [1] - It highlights the role of dividend investing in supplementing retirement income over a 5-7 year horizon [1]

Key Points American Express benefits from a strong brand thanks to its premium card offerings. Operating the underlying payments platform supports a powerful network effect. Despite consistent revenue and profit growth, the current valuation gives investors a reason to hesitate. 10 stocks we like better than American Express › Warren Buffett's time as CEO of Berkshire Hathaway is done. But that doesn't mean investors can't learn from the Oracle of Omaha. He left his post with the conglomerate's m ...

Core Viewpoint - Deutsche Bank has released a report on the outlook for the U.S. consumer finance sector in 2026, focusing on the earnings guidance of seven companies, which is expected to have a greater impact on stock prices than the actual Q4 performance [1] Group 1: Company-Specific Guidance - American Express (AXP): Deutsche Bank expects a short-term revenue growth slowdown to 8.5% for FY2026, below the market expectation of 9.0%, with diluted EPS projected at $17.75, slightly above the consensus of $17.56 [2] - Synchrony Financial (SYF): Projected loan receivables growth of 4.75% for 2026, exceeding the market expectation of 3.14%, but net revenue forecasted at $15.7 billion, below the market's $16.5 billion [2] - Ally Financial (ALLY): Expected average earning assets growth of 1.7% in 2026, with net interest margin rising to 3.72%, slightly above the market expectation of 3.70% [3] - OneMain Holdings (OMF): Projected management receivables growth of 6.55% for 2026, below the market expectation of 8.00%, with revenue growth of 6.15%, also slightly below the consensus [3] - SoFi Technologies (SOFI): Management reiterated EPS guidance of $0.55-$0.80 for 2026, with a midpoint forecast of $0.67, significantly above the market consensus of $0.58 [4] - Navient Corp (NAVI): Expected NIM for private education loans to rise to 2.81% in 2026, with core EPS projected at $1.15, benefiting from market opportunities due to the cancellation of the GRAD PLUS program [5] Group 2: Market Trends and Influences - The guidance from these companies is expected to influence stock prices more than their Q4 actual performance, highlighting the importance of forward-looking statements in the consumer finance sector [1] - The report indicates that the consumer finance sector is experiencing varying growth rates, with some companies facing challenges due to market saturation and regulatory changes [2][3][4]

Core Viewpoint - Adding blue chip stocks, particularly those held by Berkshire Hathaway, can be a sound investment strategy due to their historical performance and stability. Group 1: Berkshire Hathaway's Portfolio - Berkshire Hathaway's portfolio is heavily concentrated, with its top four holdings comprising nearly 56% of its total stock portfolio [2] - The top four holdings are Apple (19.7%), American Express (17.3%), Bank of America (9.5%), and Coca-Cola (9.1%) [3] Group 2: Apple - Apple is the largest holding in Berkshire Hathaway's portfolio and has built a strong ecosystem around its products, enhancing customer retention [4][5] - The company generates significant free cash flow and has a growing service business that provides higher margins compared to hardware sales [6] - As of the latest data, Apple's market cap is $3.8 trillion, with a gross margin of 46.91% and a dividend yield of 0.40% [7] Group 3: American Express - American Express is positioned as a luxury brand, attracting affluent customers and generating steady income through premium card fees [8] - The company owns its payment network, allowing it to earn from transactions, annual memberships, and interest, differentiating it from competitors like Visa and Mastercard [9] - American Express has a market cap of $251 billion, a gross margin of 61.04%, and a dividend yield of 0.90% [11] Group 4: Bank of America - Bank of America operates across various banking sectors, making it a stable investment tied to the U.S. economy's long-term growth [12] - The bank's "too big to fail" status provides a safety net, enhancing consumer trust and regulatory stability [13] - As of the end of 2025, Bank of America had over $285 billion in cash and cash equivalents and over $3.4 trillion in assets, with a dividend yield of 2.04% [15] Group 5: Coca-Cola - Coca-Cola is a long-standing holding of Berkshire Hathaway, known for its stability and consistent dividend payments, having increased its annual payout for 63 consecutive years [16] - The company's products maintain strong sales regardless of economic conditions, providing it with pricing power [17] - Coca-Cola is considered a defensive stock, making it a reliable choice for long-term investors [16][18]

Core Viewpoint - The financial sector, particularly credit card issuers, is currently experiencing stock price declines despite potential long-term profitability due to proposed regulatory changes on interest rates [2][8]. Group 1: Impact of Proposed Interest Rate Cap - President Trump proposed a one-year, 10% cap on credit card interest rates, effective January 20, which has led to significant declines in stock prices of major credit card issuers [2][3]. - Major credit card issuers such as Bank of America, JPMorgan Chase, American Express, Capital One Financial, and Citigroup saw stock declines ranging from 4.5% to 9.9% following the announcement [9]. - Payment networks Visa and Mastercard also experienced stock drops of 8% and 6.9%, respectively, indicating a broader impact on the financial sector [4]. Group 2: Historical Context and Legislative Challenges - Previous attempts to cap credit card interest rates have failed, with a similar proposal by Senator Bernie Sanders stalling in Congress last year [5][6]. - The financial industry is expected to strongly oppose the current proposal, suggesting that it is unlikely to be enacted [6][7]. - Analysts predict that the banking industry will effectively counter this proposal before it gains traction [7].

Core Viewpoint - The White House is considering an executive action to implement President Donald Trump's proposal for capping credit card interest rates, as reported by Bloomberg News, citing sources familiar with the matter [1] Group 1 - The potential executive action reflects the administration's focus on consumer financial protection [1] - The move could significantly impact credit card companies and their interest rate structures [1] - This initiative aligns with broader efforts to address consumer debt and financial burdens [1]

Core Viewpoint - The Trump administration is proposing a 10% cap on credit card interest rates, which has faced opposition from the financial services industry due to concerns over access to credit for millions of consumers [1][2]. Group 1: Proposal Details - President Trump announced a proposed 10% cap on credit card interest rates, set to take effect on January 20, coinciding with the anniversary of his second inauguration [1]. - The proposal may require Congressional action and has been met with significant pushback from the financial services sector [2]. Group 2: Industry Response - National Economic Council Director Kevin Hassett indicated that discussions with major banks have included a "Trump card" aimed at expanding credit access for consumers [3][6]. - Hassett mentioned that large banks are supportive of the idea, suggesting they could voluntarily offer credit to consumers who are financially stable but currently lack access [6]. Group 3: Impact Analysis - The Electronic Payments Coalition (EPC) analyzed the potential impact of the proposed interest rate cap, estimating that 82% to 88% of credit card holders could lose their cards or face significant reductions in credit limits, particularly affecting low- to moderate-income consumers [9]. - EPC's analysis projected that nearly all credit card accounts linked to credit scores below 740 would be closed or severely restricted, impacting approximately 175 million to 190 million credit card holders [10]. - JPMorgan Chase's CFO warned that the proposed cap could lead to reduced access to credit, negatively affecting both consumers and the broader economy [13][14].

Bank executives are tiptoeing around President Trump's call to temporarily cap credit-card interest rates at 10%, opposing the idea while making sure not to antagonize the White House. ...

We recently published 9 Stocks Jim Cramer Talked About.  American Express Company (NYSE:AXP) is one of the stocks on Jim Cramer talked about. American Express Company (NYSE:AXP) is one of the biggest card payment and travel services companies in America. Its shares are up. by 14.7% over the past year, but are down by 3.8% year-to-date. Media reports suggest that American Express Company (NYSE:AXP)’s shares fell after President Trump suggested a 10% interest rate cap for credit card companies as part of hi ...