Amex looks to refresh popular cards to counteract slowdown in affluent consumer spending
- American Express’s shares experienced a decline after reporting a slower growth rate in U.S. consumer services billed business
- The company plans to announce a refresh of its U.S. consumer Gold card in the coming weeks
- Amex has successfully added perks like credits for streaming services and food delivery to drive card growth in the past
- A lower delinquency rate and reserve ratio contributed to year-over-year net income growth
American Express has faced a slight decline in its shares after reporting a slower growth rate in U.S. consumer services billed business, with a 6% increase in the second quarter compared to 8% in the first quarter. However, the company plans to announce a refresh of its popular Gold card in the coming weeks, following successful past refreshes that included perks like credits for streaming services and food delivery. This move could help drive strong cardmember acquisition and counteract concerns about slower affluent consumer spending. Additionally, American Express has seen a lower delinquency rate and reserve ratio, contributing to year-over-year net income growth.
Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about American Express’s second-quarter earnings report, its growth rate compared to previous years, the company’s marketing strategies, and credit quality. It also includes relevant details about the impact of the pandemic on consumer spending and Amex’s financial performance. The article does not include any digressions or irrelevant information, nor does it present personal perspective as a universally accepted truth.
Noise Level: 6
Noise Justification: The article provides some relevant information about American Express’s earnings report and its growth rates, as well as mentions of potential factors affecting its performance such as marketing strategies and credit quality. However, it contains some irrelevant details like the mention of a ‘pause that refreshes’ which seems to be an allusion to a song lyric and does not add much value to the overall analysis.
Public Companies: American Express (AXP)
Key People: Telis Demos (Writer)
Financial Relevance: Yes
Financial Markets Impacted: American Express shares
Financial Rating Justification: The article discusses American Express’s second quarter earnings report and its impact on the company’s share price, as well as potential future growth strategies and credit quality. This information is relevant to investors and financial markets as it directly affects the performance of a major financial institution and its stock value.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the article. The text discusses American Express’s second quarter earnings report and its impact on the company’s shares.
www.wsj.com 
