NEW YORK, January 31, 2026, 13:52 (EST) — The market has closed.
- American Express (AXP) slipped 1.8% to $352.17 on Friday following its quarterly update
- The company forecasted 2026 EPS between $17.30 and $17.90 and announced plans to raise its dividend to 95 cents
- As Monday approaches, traders are focused on rate-policy updates and the February 6 U.S. jobs report
American Express (AXP) slipped 1.8% on Friday, closing at $352.17, putting the card issuer at a disadvantage going into the next session. (Yahoo Finance)
The move comes as investors continue to watch card names for signs of strength in the high-end consumer sector, despite volatile rates and shifts in risk appetite driven by policy news. Wall Street fell Friday after President Donald Trump nominated Kevin Warsh for Fed chair and inflation data came in hotter than expected. Terry Sandven of U.S. Bank Asset Management highlighted the “uncertainty” tied to the new chair pick and persistent inflation pressures. (Reuters)
Rates remain the key focus. Fed Vice Chair for Supervision Michelle Bowman said she still anticipates three quarter-point cuts this year but backed holding policy steady this week to assess more data, describing the labor market as “fragile.” The next Fed meeting is set for March 17-18. (Reuters)
American Express reported in an SEC filing that its fourth-quarter billed business — a key card spending metric — jumped 9% to $445.1 billion. Revenue, excluding interest expense, increased 10% to $19.0 billion. Net income hit $2.46 billion, or $3.53 per share, while expenses rose 10% to $14.5 billion. The company projects 2026 revenue growth of 9% to 10% and expects EPS between $17.30 and $17.90. It also announced plans to boost its quarterly dividend by roughly 16%, bringing it to 95 cents per share. (Securities and Exchange Commission)
Peers are sending mixed signals on volumes and costs. Visa topped first-quarter profit estimates but warned that cross-border volume growth—a key travel indicator—is slowing. Mastercard, meanwhile, announced a strategic review that will cut about 4% of its full-time workforce and incur roughly $200 million in restructuring charges in Q1. (Reuters)
American Express CFO Christophe Le Caillec told Reuters the company is “not projecting any discontinuity,” noting that Gen Z and millennials now outspend Gen X on its U.S. consumer cards. Truist analysts flagged the quarter as reflecting “the cost of the Platinum refresh,” while investor attention has turned to a proposed one-year 10% cap on credit-card interest rates supported by Trump. Le Caillec expressed skepticism, saying he doubts the cap would “accomplish that goal.” (Reuters)
The list of risks is extensive. In its 8-K filing, American Express flagged potential impacts from changes in spending patterns, unemployment rates, and regulatory actions—among them, possible caps on credit-card interest rates. It also highlighted the familiar uncertainties tied to inflation, interest rates, and market swings. (Securities and Exchange Commission)
Markets are shut for the weekend, so all eyes turn to the U.S. employment report for January, set for Feb. 6 at 08:30 a.m. ET. It’s a key gauge of wage growth and interest rate direction, often shaking up lenders and card stocks. (Bls)
