By Shares of banks and other financial institutions experienced a rise following a period of mixed earnings. While some companies faced challenges, others reported growth that exceeded expectations.
American Express: Weathering the Storm
Despite warning of an increase in net write-offs compared to the previous year, credit-card lender American Express saw a surge in their shares. The company’s growth forecasts managed to surpass the predictions of Wall Street.
Visa: Consumer Spending Propels Profit
Credit-card processor Visa reported a climb in profit during its fiscal first quarter. The company attributed this success to the resilience of consumer spending.
US Bancorp: A Minor Setback
On the other hand, US Bancorp shares ticked down as brokerage Piper Sandler downgraded their ratings on the regional bank. This decision was made based on valuation considerations after the bank’s strong performance over the past three months.
Columbia Banking System Rebounds
Columbia Banking System, the owner of the Umqua banking chain in the Pacific Northwest, managed to recoup some of its losses from earlier in the week. Analysts noted that the earnings of regional banks were hindered by Federal Deposit Insurance Corp. tolls. According to Quincy Krosby, chief global strategist at brokerage LPL Financial, “You heard them when they gave the earnings, ‘if we didn’t have to pay that, we would be making money’ … there’s an asterisk next to the earnings.”
Barclays Faces Municipal Bond Market Ban
Texas officials have opted to ban Barclays from participating in the state’s municipal bond market. This action was taken due to concerns related to the bank’s environmental, social, and governance policies.
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