Visa and Mastercard report earnings next week. After disastrous numbers from American Express what should you expect?
American Express shares plummeted over 9 percent on Tuesday, their worst decline since January, a day after the credit card company said credit losses were rising and even its wealthiest customers were slowing their spending.
"American Express reported truly recessionary earnings," wrote Craig Maurer, analyst at Calyon Securities in New York.
Will Visa and Mastercard say more of the same?
I think the most important thing you’ll learn is, how Americans are spending, says Pete Najarian. We have moved into a credit society. Of the three names I like American Express best at current levels. But that’s for a long term trade.
I wouldn’t touch American Express, counters Joe Terranova. I like Visa and Mastercard because they’re not involved in credit. They’re transaction processing companies, only.