In an otherwise quiet day, investors will turn their attention to American Express (AXP) earnings ahead of the market open.
American Express results will peel back the curtain on the health of the consumer as well as commercial lending trends. While analysts aren’t quite expecting a blockbuster fourth quarter, management will likely provide updated guidance for 2020.
American Express is estimated to report adjusted earnings of $2.01 per share on $11.36 billion in revenue, according to analysts polled by Bloomberg.
Another closely watched segment will be its consumer business. The results will provide some clues as to how the consumer is faring and key commercial trends to watch this year. American Express card spending drives about half of its total revenue, and analysts anticipate spending growth of 6% during the fourth quarter driven by strong holiday sales.
The options market is currently implying about a 2.8% one-day move in either direction following American Express results. Shares of the Dow component jumped 33% over the past 12 month and have outperformed the broader market.
Economic data due to be released Friday include the following: Markit US Services PMI, January preliminary (52.5 expected, 52.8 prior); Markit US Composite PMI, January preliminary (52.7 prior); Markit US Manufacturing PMI, January preliminary (52.5 expected, 52.4 prior).
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Heidi Chung is a reporter at Yahoo Finance. Follow her on Twitter: @heidi_chung.
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