Amex Surpasses $2B in Card Fees, Trump’s Rise Affects Regulation Outlook

  • Financials slip despite strong earnings from American Express
  • American Express tops $2 billion in quarterly revenue from card fees for the first time
  • Double-digit growth in card fees for 24th consecutive quarter
  • Trump’s rise in polls boosting financial sector due to potential soft regulation

Shares of banks and financial institutions experienced a dip despite strong earnings from American Express, which reported over $2 billion in quarterly revenue from card fees for the first time. This marks the company’s 24th consecutive quarter of double-digit growth in card fees. The financial sector has held onto gains for the week, with Quincy Krosby, chief global strategist at LPL Financial, attributing this to Donald Trump’s rise in presidential election polls. Trump’s potential presidency is associated with soft regulation, which benefits the heavily regulated banking sector. As strategists adjust their investment buckets based on political shifts leading up to Election Day, the financial sector continues to see changes.

Factuality Level: 7
Factuality Justification: The article provides relevant information about American Express’s financial performance and the potential impact of the presidential election on the banking sector. However, it includes a personal perspective from Quincy Krosby which may not be universally accepted truth.
Noise Level: 5
Noise Justification: The article provides some relevant information about American Express’s financial performance but relies heavily on speculation about the potential impact of the US presidential election on the banking sector without providing substantial evidence or analysis.
Public Companies: American Express (AXP), LPL Financial (LPLA)
Key People: Quincy Krosby (chief global strategist)

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Financial Relevance: Yes
Financial Markets Impacted: Banks and financial institutions
Financial Rating Justification: The article discusses the impact of political events on financial markets, specifically mentioning shares of banks and other financial institutions slipping or holding onto gains. It also mentions American Express’ strong earnings and its association with the highly regulated banking sector.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no mention of an extreme event in the article.

Reported publicly: www.marketwatch.com