Add another prominent financial figure speaking out against interest rate caps on credit cards. "A 10% credit card cap, what you would see is a reduction in credit cards across the United States," American Express (AXP) CEO Stephen Squeri told Yahoo Finance by phone on Friday. "A lot of people would not be getting credit cards. You would see [credit] line reductions. And listen, the American economy runs on credit, and so you would see a small business slowdown. It's not the right answer." President Tr ...

Core Insights - Affirm Holdings Inc. is experiencing significant stock pressure, down 15% year-to-date due to sector-wide challenges and company-specific issues [1] - The company's Momentum score in Benzinga's Edge Stock Rankings has sharply declined from 72.68 to 21.46, reflecting the stock's recent downturn [2] Company Performance - Affirm's shares fell by 3.92% on Thursday, closing at $62.80, and dropped another 1.82% overnight, indicating a negative trend [4] - The stock is rated high on Growth but performs poorly on Value and Momentum, with unfavorable price trends across short, medium, and long-term periods [4] Market Sentiment - The decline in Affirm's stock was exacerbated by a short report from activist short-seller Kerrisdale Capital, which criticized the company's credit fundamentals and reliance on financially unstable consumers [3]

The S&P 500 just reached a new all-time high, and many stocks look expensive right now. But there are still some bargains to be found, and that's especially true in the financial sector. Here are two bank stocks that recently reported earnings, and why they could be excellent choices for long-term investors at their current prices. The largest all-digital U.S. bank Ally Financial (NYSE: ALLY) is one of the most interesting bank stocks in the market. It was spun out of General Motors (NYSE: GM) in the wak ...

Group 1: Proposal Overview - The Trump administration is developing a proposal that would allow prospective homebuyers to withdraw from their 401(k) retirement accounts for a down payment on a home [1][5] - National Economic Council Director Kevin Hassett indicated that the typical monthly payment for homebuyers has doubled, and the required down payment has increased from approximately $15,000 to $32,000 [6][8] Group 2: President's Position - President Trump expressed his disapproval of the 401(k) withdrawal proposal, stating he prefers to keep 401(k) accounts intact due to their strong performance, which has seen increases of 80%-90% [2][3] - Trump emphasized the importance of maintaining the health of 401(k) accounts over using them for home down payments, noting that many individuals report significant gains [3] Group 3: Broader Economic Context - The administration's affordability agenda includes a proposal to cap credit card interest rates at 10% for one year, addressing rising credit card debt as a barrier for Americans saving for down payments [9][12] - Trump's plan to restrict institutional investors from purchasing homes is aimed at addressing rising housing prices, which he claims is unfair to the public [12][14]

Core Viewpoint - President Trump has filed a $5 billion lawsuit against JP Morgan Chase and CEO Jamie Dimon, claiming that the bank terminated accounts linked to him and his family due to political motivations following the January 6th Capitol riot [1][2]. Group 1: Lawsuit Details - The lawsuit alleges that JP Morgan's actions were driven by "unsubstantiated woke beliefs" to distance itself from Trump and his conservative views [2]. - JP Morgan has responded, stating that the lawsuit lacks merit and that they do not close accounts for political or religious reasons, but rather due to legal or regulatory risks [3][5]. Group 2: Company Position and Regulatory Context - JP Morgan emphasizes that account closures are based on compliance with strict rules and regulations, and they are required to report to the government when subpoenaed [6]. - The bank's CEO, Jamie Dimon, has indicated that they have debanked individuals across the political spectrum, asserting that political affiliation is not a factor in their decision-making [5]. Group 3: Market and Investor Reactions - Analysts suggest that the lawsuit may be a strategic move by Trump for discovery purposes, as debanking for political reasons is not currently illegal [7]. - From an investor perspective, the lawsuit is viewed as noise, with the $5 billion claim considered not significant for JP Morgan [12][13].

Core Viewpoint - Bank of America and Citigroup are considering offering credit cards with a 10% interest rate in response to President Trump's demand for a cap on rates, which has raised concerns about its potential impact on consumer spending and credit availability [1][2]. Group 1: Company Responses - Bank of America CEO Brian Moynihan expressed that a 10% interest cap would slow consumer spending and limit credit availability, although he acknowledged the legitimacy of affordability issues behind the proposal [3]. - Citigroup Chair and CEO Jane Fraser stated that the proposed cap would restrict access to credit, potentially benefiting only the wealthy and negatively impacting sectors reliant on credit card spending [4]. - JPMorgan Chase CEO Jamie Dimon warned that a 10% cap would be catastrophic, removing credit access for 80% of Americans who rely on it as backup [5]. Group 2: Industry Reactions - The proposal for a 10% cap on credit card interest rates has faced criticism from various industry groups, including the Bank Policy Institute and the American Bankers Association, highlighting concerns over its implications for credit access and consumer spending [7]. - Trump initially called for the cap in a post on Truth Social, emphasizing the need to protect the public from high-interest rates charged by credit card companies [6].

Market Overview - Stocks closed higher for the second consecutive day, with the Dow up about 300 points or 1.6%, the Nasdaq up almost 1%, and the S&P 500 up about 0.5% or 37 points [2][3] - The Russell 2000 and S&P 600 reached record highs, with the Russell 2000 up 0.7% [3] - The VIX index showed a spike above 20 earlier in the week but has since returned to lower levels, indicating reduced volatility concerns [4] Interest Rates and Yields - The 10-year Treasury yield closed at 4.25%, while the 30-year yield decreased by two basis points to 4.85% [5] - Higher long-term yields have raised concerns about the Federal Reserve's control over the situation, but the recent decline in yields is seen as positive for investors [6] Sector Performance - Mega-cap sectors, including communication services, consumer discretionary, and technology, led the market gains, with notable performances from companies like Alphabet, Meta, Tesla, and Nvidia [7][8] - Financials also showed strength, with large-cap financials up about 0.6% [8] - Underperforming sectors included real estate, utilities, industrials, and staples, all closing in the red [8] Intel's Q4 Earnings - Intel reported Q4 EPS of 15 cents, beating estimates, and revenue of $13.67 billion, also above the expected $13.43 billion [10][11] - Data center and AI revenue for Q4 was $4.74 billion, exceeding the estimate of $4.42 billion, while client computing revenue was slightly below expectations at $8.19 billion [11] - The Q1 revenue forecast is between $11.7 billion and $12.7 billion, which is below the consensus estimate of $12.56 billion, leading to a 5% drop in stock price after the report [11][12] Market Sentiment and Future Outlook - Analysts noted that despite the weak guidance, there are positive signs in the server market and the importance of CPUs in AI compute [19][28] - Concerns remain about manufacturing yields and inventory levels, which could impact future sales and forecasts [21][23] - The overall sentiment towards Intel's core customers in the PC business appears more confident compared to previous years, indicating a potential positive shift [32] Credit Card Interest Rates - Bank of America and Citigroup are reportedly considering new credit cards with a 10% interest rate, amidst discussions on affordability and high credit card rates [34][35] - Former FDIC chair Sheila Blair commented on the high average credit card rates and the potential for banks to lower them without significant risk to credit availability [36][38]

Core Viewpoint - Bank of America and Citigroup are considering offering credit cards with a 10% interest rate in response to President Trump's demand for a cap at that level for one year, aimed at benefiting consumers burdened by high interest rates [1][4]. Group 1: Company Actions - Bank of America and Citigroup are separately evaluating credit card options with a 10% interest rate [1][3]. - Shares of Bank of America and Citigroup increased by 1.2% and 1.8%, respectively, following the news [3]. - Bank of America CEO Brian Moynihan indicated that the bank is working on solutions to address affordability concerns while discussing the implications of a 10% cap [5]. Group 2: Industry Reactions - Financial executives from Citigroup and Wells Fargo expressed concerns about the potential negative effects of a 10% cap on credit card interest rates, with JPMorgan's Jamie Dimon warning it could lead to reduced credit availability for many consumers [7][8]. - The 10% cap is part of Trump's broader efforts to address the affordability crisis in the U.S., which includes other measures like a $200 billion mortgage bond-buying initiative [10]. Group 3: Market Context - The proposal for a 10% cap on credit card interest rates is seen as a response to consumer complaints about high rates, which can range from 20% to 30% [4]. - New York-based startup Bilt recently introduced credit cards with a 10% APR for the next 12 months, indicating a shift in the market towards lower rates [9].

Core Viewpoint - President Donald Trump has filed a lawsuit against JPMorgan Chase and its CEO Jamie Dimon, alleging that the bank closed his accounts for political reasons, seeking at least $5 billion in damages [1][2]. Group 1: Lawsuit Details - The lawsuit claims that JPMorgan Chase's decision to drop Trump as a customer was influenced by "woke beliefs" and political motivations [2]. - Trump and associated business entities are pursuing claims of trade libel and breach of fair trade covenants [1]. Group 2: JPMorgan Chase's Response - JPMorgan Chase has labeled the lawsuit as meritless, expressing regret over the situation while affirming its right to defend itself in court [3]. - The bank stated that account closures are not politically motivated but are due to legal or regulatory risks [4]. Group 3: Jamie Dimon's Position - Jamie Dimon has publicly criticized Trump's proposed cap on credit card interest rates, describing it as an "economic disaster" that could severely impact credit access for lower-income Americans [5]. - Dimon has also expressed disapproval of Trump's hardline immigration policies, advocating for a more measured approach to immigration issues [6].

Core Viewpoint - Bank of America and Citigroup are considering options to meet President Trump's request to limit credit card interest rates to 10% for one year [1] Group 1 - Bank of America is exploring potential solutions to address the interest rate cap demand [1] - Citigroup is also evaluating options to comply with the proposed interest rate limitation [1]