Why American Express Is Trading Higher Today
Shares of American Express (NYSE: AXP) traded approximately 4% higher as of 1:30 p.m. ET today, according to data from S&P Global Market Intelligence, as the market tried to claw back some of the losses incurred last week when the broader benchmark S 500 fell 1.7% and suffered its worst week since March of 2023. While there was no specific news about the company today, there are a few reasons to explain the movement.
As a company operating in the lending and credit card space, American Express is a cyclical stock that's going to be impacted by trends in the economy. Last week, economic data hinted that the economy might be deteriorating more quickly than expected, calling into question a soft-landing scenario.
The U.S. economy also added fewer jobs than expected in August. Unemployment remained steady, but fears of a weaker labor market are going to impact a credit card company that underwrites loans and credit that's heavily based on monthly income.
Source Fool.com
