The shares were traded mostly lateral Friday, with major benchmarks closing closed and lowered inventories. Investors were initially concerned about…
The shares were traded mostly lateral Friday, with major benchmarks closing closed and lowered inventories. Investors were initially concerned about lowering economic growth in China, but feelings were reversed when Chinese government officials made statements to eliminate these concerns. Dow Jones Industrial Average (DJINDICES: ^ DJI) and S & P 500 (SNPINDEX: GSPC) succeeded both small winnings for the week
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Consumer stocks had one of their best days in recent weeks thanks to positive earnings reports. Consumer Staples Select Sector SPDR ETF (NYSEMKT: XLP) closed 2.3%. Homebuilder shares, which have been bullied for a month, fell sharply, and iShares US Home Construction ETF (NYSEMKT: ITB) decreased 2.6%.
Major shareholdings are made significant, PayPal Holdings (NASDAQ: PYPL) increased after reporting strong user and profit growth and American Express (NYSE: AXP ) also pleased investors with a good quarterly report.
Stocks on PayPal rose 9.4% on better than expected earnings and news Company progress that makes money on Venmo service. Revenue increased by 13.7% to SEK 3.68 billion and adjusted earnings per share increased by 26% to $ 0.58 compared with expectations of $ 0.54.
PayPal added a net 9.1 million accounts in the quarter, representing a total increase of 254 million, an increase of 15% from where it stood at this time last year. The company processed 2.5 billion payment transactions in the quarter, an increase of 27% and the total payment volume (TPV) increased 25% on a neutral-neutral basis to 143 billion dollars. PayPal users also use the service more often, with transactions per active account growing by 9.5%.
Analysts at the conference call were particularly interested in hearing CEO Daniel Schulman says that Venmo’s monetization is “reaching a tip”. 24% of Venmo users have made a transaction that PayPal can earn from 17% last quarter and 13% in May this year. Venmos TPV grew 78% to 17 billion dollars.
PayPal also announced new partnerships with American Express and Walmart (NYSE: WMT) today. The AmEx partnership enables deeper integration with the company platform and allows customers to use their reward points at PayPal merchants. Walmart will allow payment and payment from PayPal balances in their stores.
When American Express delivered its quarterly issue after the end of Thursday, it reported a strong earnings increase due to increased consumer spending, higher tax revenues and growth in the loan portfolio. Revenue increased 9.2% to $ 10.14 billion and earnings per share increased 24.5% to $ 1.88, well over $ 1.77 Wall Street awaited. As a result, investors sent their shares up by 3.8% Friday.
Short-term expenses increased by 8% – 10% after adjustment for currency fluctuations – and the company acquired 3 million new cards. Global Consumer Services Group increased net revenue by 15% to $ 779 million. Global Commercial Services had 20% net income growth to $ 606 million and net profit increased by 38% to $ 580 million at Global Merchant and Network Services.
American Express also increased its guidance for the full year. It now expects 2018 revenue to grow by between 9% and 10% and for adjusted EPS to be in the range of $ 7.30 to $ 7.40, from above the previous guidance of $ 6.90 to $ 7.30 and above analysts’ consensus estimate of $ 7.28. “This marks our sixth consecutive quarter of highly adjusted revenue growth and our investments in new benefits, services and digital capabilities continued to create momentum when we enter the late 2018,” said CEO Stephen J. Squeri in the press release.  The Sterling Report follows a strong second quarter, with profits going over the company’s business units. Much of its earnings growth is a direct result of lower corporate tax rates, but American Express also generates very broad organic growth.