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American Express (AXP) released its latest quarterly earnings report showing an increase in net sales, but it still fell short of Wall Street’s expectations. In a conversation with Yahoo Finance, CEO Stephen Squeri said: [the economy], and that’s what our guidance is, the economy will slow down slightly. It’s not a recession, but the economy is slowing down a bit.”Is there more to this story than that?
Moshe Orenbuch, TD Cowen Managing Director, Specialty Finance, joins Yahoo Finance to discuss guidance from American Express and provide insight on how to navigate consumers and 2024.
“Consumers are still spending a lot of money. I think what AmEx has benefited the most from is the diversification of its spending. In other words, they were actually seeing a slowdown in T&E. is” [Travel and Entertainment] “Spending is kind of being led by softening airline spending, which used to be the flag bearer. Now restaurants are a bigger category than airlines, and T&E is a That’s just over a third of the total,” Orenbuch explains. their spending. So while the amount that consumers are spending has changed a little bit, as three-quarters of that is from increased goods and services and everyday spending, they’re still spending pretty well, and that’s a possibility. there is. It is expected to increase by high single digits in 2024. ”
For more expert insights and the latest market trends, click here to watch the full episode of Yahoo Finance Live.
Editor’s note: This article was written by Nicholas Jacobino
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