Good MorningEquity markets gave up Monday's gains as geopolitical tensions came back to the fore. Iran's missile strike against Israel raises the chance for an all-out war in the Middle East, causing further disruption to global trade and energy markets. The S&P 500 fell more than 1% at the session's low, leaving the market within the narrow range it has traded for nearly two weeks. WTI, the US benchmark for oil, rose more than 3% in a volatile day of trading, confirming a bottom at $67.50.
Economic data also impacted Tuesday's trading. Though mixed, the data regarding the economy and outlook for FOMC interest rate cuts was better than expected. The ISM manufacturing data was better than expected at 47.2 but still showed contraction in the sector, while the JOLTs data showed a surprising increase in job openings. The good news is that JOLT data suggests the labor markets remain resilient and the economy is on track for a soft landing; the bad news is that the Fed may not follow through with its indicated pace of rate cuts because of it.
Featured: New President Kamala warning (Stansberry Research) 
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There are two ways to interpret global events happening right now, from a weakening state in consumer discretionary trends to the geopolitical conflicts taking place in the Middle East. The first and most common is to read about them in the news and never think of them again. The second is the way... Read the Full Story |
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Chinese stocks have been on a tear recently, surging higher by as much as 50% in some cases, following the Chinese government's announcement of a series of measures to stimulate the slowing economy. The rally has sparked immense excitement among investors, who now wonder if the uptrend will contin... Read the Full Story |
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Stocks | | | U.S. stocks retreated from their records Tuesday after Iran fired missiles into Israel, a sharp escalation of tensions in the Middle East that investors fear could lead to disruptions in the flow of oil. The S&P 500 pulled 0.9% lower, and the Dow Jones Industrial Average lost 173 points, or 0.4... Read the Full Story |
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The artificial intelligence (AI) revolution is well underway. There are three essential components to deploy AI: the GPU, like NVIDIA Co. (NASDAQ: NVDA) chips to crunch the data; storage, like Micron Technology Inc. (NASDAQ: MU) NAND flash and high-bandwidth memory (HBM) memory... Read the Full Story |
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Stocks | | | U.S. stocks edged higher in a quiet Wednesday, and Treasury yields rose following an encouraging update on the job market’s strength. The S&P 500 finished virtually unchanged, a day after sliding from its record on worries about a possible widening of the fighting in the Middle East. The Dow J... Read the Full Story |
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Lennar (NYSE: LEN) has headwinds in 2024, including margin pressure, but that is the worst news. While the housing market at large is tepid, conditions favor home builders, driving business, cash flow, and capital returns. Looking forward, there is a catalyst for 2025 in FOMC rate cuts.
High ra... Read the Full Story |
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Markets | | | Warren Buffett's Berkshire Hathaway is buying the rest of its utility unit from the estate of a longtime board member who died three years ago, but it's not clear exactly how much it will pay for the 8% stake Read the Full Story |
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Markets | | | U.S. job openings rose unexpectedly in August as the American labor market continued to show resilience.The Labor Department reported Tuesday that employers posted 8 million vacancies in August, up from 7.7 million in July. Economists had expected openings to be virtually unchanged. Openings were up... Read the Full Story |
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Markets | | | Inflation in the 20 countries that use the euro fell to 1.8% in September, below the European Central Bank's target of 2% for the first time in more than three years as falling energy prices give consumers relief from a burst of inflation that at one point reached into double digits.Tuesday's offici... Read the Full Story |
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Marinus Pharmaceuticals (NASDAQ: MRNS) is a micro-cap pharmaceutical stock with multiple Wall Street analysts seeing significant upside. Both Oppenheimer and Cantor Fitzgerald recently issued or reiterated massive price targets for the company. Oppenheimer's $6 target signals that&n... Read the Full Story |
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Wednesday's Early Bird Stock Of The Day American Express Company, together with its subsidiaries, operates as integrated payments company in the United States, Europe, the Middle East and Africa, the Asia Pacific, Australia, New Zealand, Latin America, Canada, the Caribbean, and Internationally. It operates through four segments: U.S. Consumer Services, Commercial Services, International Card Services, and Global Merchant and Network Services. The company's products and services include credit card, charge card, banking, and other payment and financing products; network services; expense management products and services; and travel and lifestyle services. It also provides merchant acquisition and processing, servicing and settlement, point-of-sale marketing, and information products and services for merchants; and fraud prevention services, as well as the design and operation of customer loyalty programs. In addition, the company operates lounges at airports under Centurion Lounge brand name. It sells its products and services to consumers, small businesses, mid-sized companies, and large corporations through mobile and online applications, affiliate marketing, customer referral programs, third-party service providers and business partners, direct mail, telephone, in-house sales teams, and direct response advertising. American Express Company was founded in 1850 and is headquartered in New York, New York. | Should I Buy American Express Stock? AXP Pros and Cons Explained
These insights were generated using artificial intelligence. They are based on proprietary MarketBeat data, news articles, and custom LLM A.I. algorithms. This analysis of American Express was last updated on Thursday, December 12, 2024 at 8:20 PM.
Pros-
American Express recently reported earnings per share (EPS) of $3.49, exceeding analysts' expectations of $3.27, indicating strong financial performance and effective management.
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The stock is currently trading at $304.03, reflecting a robust market capitalization of $214.17 billion, which suggests investor confidence and stability in the company's operations.
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Institutional investors own 84.33% of American Express, indicating strong institutional confidence in the company's long-term prospects.
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American Express has shown a year-over-year revenue increase of 8.2%, demonstrating growth potential and resilience in its business model.
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The company has a high return on equity of 32.46%, which indicates efficient use of shareholders' equity to generate profits.
Cons-
Recent insider selling, including a significant sale of 77,887 shares by an insider, may raise concerns about the company's future performance and insider confidence.
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The stock has a relatively high P/E ratio of 22.37, which could suggest that it is overvalued compared to its earnings, potentially leading to a price correction.
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American Express's debt-to-equity ratio stands at 1.80, indicating a higher level of debt relative to equity, which could pose risks in times of economic downturns.
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Despite strong revenue growth, the company reported revenue of $16.64 billion, slightly below analysts' expectations of $16.68 billion, which may indicate challenges in meeting market forecasts.
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Market volatility, as indicated by a beta of 1.23, suggests that American Express's stock price may be more volatile than the overall market, which could be a risk for conservative investors.
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