Visa, American Express Earnings Point to a Strong Holiday Season for Retailers - Barron'sSkip to Main ContentThis copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com.# Visa and American Express Results Point to a Strong Holiday Season for RetailersBy [Sabrina Escobar]ShareResize-- ...

Amex is a fairly cheap-looking stock, but concerns about caps on interest rates could limit its gains.One of the best financial stocks to own in recent years has been American Express (AXP 0.68%). The company is a top credit card issuer and caters to an affluent customer base that's been willing to spend heavily, even amid inflation and growing economic concerns. The stock is up over 210% in just the past five years, which is far better than the S&P 500's gains of around 81% in the same period (returns are ...

Market Overview - The U.S. stock market opened on January 12, 2026, with major indexes experiencing early declines due to a criminal probe involving Federal Reserve Chair Jerome Powell and a new policy proposal from President Donald Trump [1][3] - The Dow Jones Industrial Average (DJIA) and S&P 500 (SPX) had previously reached record highs following positive unemployment data [1] Major Index Performance - The S&P 500 opened at 6,944.12 points, down 0.32% from the previous close, while the DJIA opened at 49,499.67 points, down 0.01% [2] - The Nasdaq Composite opened lower at 23,576.88 points, down 0.40% [2] - Early trading saw the Dow decline approximately 400 points, a 0.3% drop, with the S&P 500 down 0.1% and the Nasdaq Composite slipping less than 0.1% [2] Key Market Catalysts - The U.S. Department of Justice has initiated a criminal probe into Jerome Powell, raising concerns about the independence of the Federal Reserve [3] - President Trump's proposal for a one-year cap on credit card interest rates at 10% negatively impacted financial stocks, with Synchrony Financial and Capital One Financial dropping approximately 8% and 6% respectively [4] Safe-Haven Assets - Gold futures surged to $4,605 an ounce, up 2.4%, as investors sought refuge amid market turbulence and geopolitical risks [5] - Crude oil prices edged lower, with West Texas Intermediate futures down 0.5% to $58.85 a barrel [5] Upcoming Economic Data - Key economic data releases include the U.S. Consumer Price Index (CPI) on January 13 and the Producer Price Index (PPI) on January 14 [7][8] - The Federal Reserve's monetary policy remains a focus, with analysts anticipating a pause in rate cuts at the upcoming FOMC meeting [8] Earnings Releases - Microsoft is scheduled to release its fiscal year 2026 second-quarter financial results on January 28, 2026 [9] - Other companies reporting earnings on January 12, 2026, include WaFd Inc, Platinum Group Metals, Lifecore Biomedical, and Loop Industries [9] Individual Stock Movements - Intel Corporation shares surged by 10.8% following a positive social media post from President Trump [10] - General Motors Company experienced a 0.3% dip after announcing $7.1 billion in special charges for restructuring [11] - Walmart shares advanced 2% due to its inclusion in the Nasdaq 100 index starting January 20 [10]

US stock futures sank on Monday, pulling back from records amid concerns over Federal Reserve independence after US prosecutors opened a criminal investigation into its Chair Jerome Powell. Dow Jones Industrial Average futures (YM=F) sank 0.7%, while S&P 500 futures (ES=F) fell 0.6%. Contracts on the tech-heavy Nasdaq 100 (NQ=F) led the way lower, dropping roughly 0.9% on the heels of all-time closing highs for Wall Street stocks. Rattled markets are turning their backs on US assets after Powell said th ...

Core Insights - JPMorgan Chase is taking over the Apple Card from Goldman Sachs, marking a significant shift in the management of Apple's credit card portfolio valued at approximately $20 billion [1][11] - The transition is expected to take about two years, with JPMorgan planning to move the card balances to its retail banking platform, pending regulatory approvals [2][11] - The deal concludes over a year of speculation regarding which financial institution would assume control of Apple's credit card business [4][11] Company and Industry Analysis - Apple has maintained its focus on consumer-oriented financial services, with its digital wallet services leading the market, despite fluctuations in its card portfolio since 2023 [3] - The Apple Card portfolio is estimated to represent around $21 billion in receivables and could generate about $100 billion in payment volume, which is roughly 1% of Mastercard's volume and 75 basis points of Visa's volume [8] - JPMorgan is preparing for potential credit losses by logging a $2.2 billion provision in the fourth quarter of 2025, following a $3.4 billion provision in the third quarter, which included $600 million related to card services [7][11] - The Apple Card has shown impressive growth, with a compounded annual growth rate (CAGR) of over 53% from 2019 to 2021, and a subsequent CAGR between 31% and 42%, significantly outpacing the top 10 credit card issuers [10] - Nearly 40% of Apple Card owners had an annual income of $100,000 or more in 2023, indicating a customer base with substantial spending power [12] - JPMorgan's card business has been expanding steadily, adding 10 million new accounts annually from 2022 to 2024, with a 12% increase in net revenue from card services in the third quarter compared to the previous year [13]

Imagine waking up tomorrow to find that every dollar of America’s $18 trillion-plus in credit card debt had been wiped clean. No interest, no minimum payments, no late fees, all of it gone. Find Out: I Asked ChatGPT What Would Happen If Billionaires Paid Taxes at the Same Rate as the Middle Class Read Next: 9 Low-Effort Ways To Make Passive Income (You Can Start This Week) While that might sound like a dream come true for millions of consumers, what would it actually mean for the average American, for the ...

Market Overview - The stock market rebounded this week with the S&P 500 and Nasdaq increasing by 1.7% and 2.1% respectively after previous losses of over 2% [1] - Concerns about U.S.-China trade, the federal government shutdown, and regional bank credit quality influenced market fluctuations [1] Financial Sector Performance - Zion and Western Alliance disclosed bad loans, leading to a selloff in financial stocks, with Zion and Western Alliance shares dropping 13% and nearly 11% respectively [1] - Capital One, a credit card issuer, fell 5.5% on Thursday but rebounded 4% the following session, reflecting market volatility [1] - Wells Fargo reported a strong third quarter, beating both top and bottom-line estimates, and raised its ROTCE target from 15% to 17%-18% [1] - Goldman Sachs achieved record third-quarter revenue with a 42% increase in investment banking fees compared to last year, although shares fell 1.8% for the week [1] - BlackRock reported better-than-expected results, with shares rising 2.5% for the week, and announced a new money market fund compliant with the GENIUS Act [1] Company-Specific Developments - Abbott Laboratories had another disappointing quarter, leading to a price target reduction from $145 to $140 and a downgrade to a 3 rating [1] - DuPont announced a spinoff of its electronics business Qnity, with shares jumping 8% for the week, and is trading at a 38% discount to its estimated sum of parts [2] - Honeywell will spin off its Solstice Advanced Materials unit, with a 1% weekly advance in its stock [2] - Salesforce shares gained during Dreamforce week, with a forecast of $60 billion in annual revenue for fiscal year 2030, exceeding market expectations [2]

Core Insights - American Express reported record quarterly revenue driven by strong spending from affluent consumers, with shares rising approximately 15% in 2025, slightly outperforming the S&P 500 [1][5]. Financial Performance - The company announced third-quarter earnings per share of $4.14, with revenue increasing 11% year-over-year to a record $18.43 billion, surpassing analysts' expectations [2]. - American Express raised the lower end of its full-year earnings per share outlook to $15.20 to $15.50, up from a previous range of $15 to $15.50, and projected revenue growth of 9% to 10% compared to the earlier estimate of 8% to 10% [2][7]. Market Reaction - Following the earnings announcement, American Express shares surged over 6% to around $343, positioning them to close at a record high [3]. Economic Context - The results highlight a trend where the economy is increasingly influenced by the spending habits of wealthy Americans, who are benefiting from stock market gains [4]. - The CEO noted that the launch of updated high-end credit cards contributed significantly to the strong performance, with demand and engagement exceeding expectations [4].

Core Insights - American Express shares have increased approximately 15% in 2025, slightly outperforming the S&P 500's gains [1][5] Financial Performance - American Express reported record quarterly revenue driven by strong spending from affluent consumers, with third-quarter earnings per share at $4.14 and revenue reaching $18.43 billion, an 11% year-over-year increase [2][5] - The company raised the lower end of its full-year earnings per share outlook to $15.20 to $15.50, up from a previous range of $15 to $15.50, and projected revenue growth of 9% to 10%, compared to the prior estimate of 8% to 10% [3] Market Reaction - Following the earnings announcement, American Express shares surged over 6% to approximately $343, positioning them for a record closing high [3] Economic Context - The results highlight a trend where the economy is increasingly influenced by the spending habits of wealthy Americans, who are benefiting from stock market gains [4] - CEO Stephen Squeri noted that the launch of updated high-end credit cards contributed significantly to the strong performance, with demand and engagement surpassing expectations [4]

Financial Performance - Revenue increased by 11% to $18426 million in Q3'25 compared to $16636 million in Q3'24[9] - EPS increased by 19% to $414 in Q3'25 compared to $349 in Q3'24[9] - Net card fees increased by 18% to $2551 million versus Q3'24, driven by growth in premium card portfolios[40, 81] - The company is raising FY2025 guidance to 9-10% revenue growth and EPS of $1520 - $1550[4] Billed Business Growth - Total billed business increased by 8% FX-adjusted in Q3'25[11] - U S Consumer Services billed business increased by 9% year-over-year in Q3'25[14] - International Card Services billed business increased by 13% year-over-year in Q3'25[19] Customer Acquisition and Engagement - Proprietary new cards acquired reached 32 million in Q3'25[24] - 72% of global new accounts acquired were on fee-paying products[24] - American Express cards are accepted at an estimated 160 million merchant locations worldwide, a nearly 5x increase since 2017[4] Credit Metrics - Reserves as a % of total loans & CM receivables is 29%[38] - 30+ Days Past Due is 13% of Card Member Loans and Receivables[33]