Wall Street Major Indexes Close Weakly Amid Market Concerns
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy AXP?
Source: seekingalpha
- Market Weakness: The S&P 500 index closed 0.44% lower than the previous week and 0.87% lower than January, reflecting investor concerns about market outlook, particularly after President Trump's tariff announcement triggered a sell-off.
- Tech Stocks Under Pressure: Major tech stocks faced declines due to fears of an AI bubble, with American Express (AXP) dropping 10.77% following a research report, while Wells Fargo (WFC) retreated 8.17% amid risks associated with a failed UK mortgage firm.
- HSBC's Strong Performance: HSBC Holdings (HSBC) saw its stock rise 5.68% after reporting higher Q4 revenue and a dividend hike, indicating strong market performance and confidence in its future financial targets.
- Emerging Company Dynamics: Circle Internet Group (CRCL) surged 32.40% due to strong performance of its USDC stablecoin, while Nu Holdings (NU) reported record revenue but fell 14.55% due to a decrease in its efficiency ratio.
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Analyst Views on AXP
Wall Street analysts forecast AXP stock price to rise
21 Analyst Rating
8 Buy
12 Hold
1 Sell
Moderate Buy
Current: 335.320
Low
280.00
Averages
379.06
High
425.00
Current: 335.320
Low
280.00
Averages
379.06
High
425.00
About AXP
American Express Company is a globally integrated payments company with card-issuing, merchant-acquiring and card network businesses. It offers products and services to a range of customers, including consumers, small businesses, mid-sized companies and large corporations around the world. Its segments include U.S. Consumer Services (USCS), Commercial Services (CS), International Card Services (ICS) and Global Merchant and Network Services (GMNS). USCS offers travel and lifestyle services as well as banking and non-card financing products. CS offers payment and expense management, banking and non-card financing products. ICS provides services to international customers, including travel and lifestyle services, and manages certain international joint ventures and its loyalty coalition business. GMNS operates a payments network that processes and settles card transactions, acquires merchants and provides multichannel marketing programs and capabilities, services and data analytics.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Optimistic Future Outlook: Management projects revenue growth of 9% to 10% for 2026, with earnings per share expected between $17.30 and $17.90, implying approximately 14% growth at the midpoint, showcasing confidence in future performance.
- Aggressive Capital Return Program: In 2025, American Express returned $7.6 billion to shareholders, including $2.3 billion in dividends and $5.3 billion in share repurchases, demonstrating the company's commitment to rewarding investors and its financial strength.
- Credit Risk Monitoring Required: Despite strong performance, concerns over potential future credit losses could lead to stock volatility, necessitating investors to closely monitor economic conditions that may impact customer credit profiles to assess investment risks.
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- Smart Building Technology: The new headquarters will incorporate smart-building technology and fully electric, energy-efficient systems, aiming for Leadership in Energy and Environmental Design (LEED) certification, showcasing the company's commitment to sustainability while enhancing employee work environments and productivity.
- Development and Design Partnership: The project is being developed by Silverstein Properties and designed by Foster + Partners, with construction slated to begin in spring 2026, further driving urban development and economic recovery in lower Manhattan.
- Financial Impact Statement: Although the total cost of the project has not been disclosed, American Express stated that it is not expected to have a material impact on its financial results, reflecting the company's confidence in future investments and commitment to the community.
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- Earnings Decline: Fourth-quarter operating earnings fell to $10.2 billion, a 29.8% decrease year-over-year, with full-year operating earnings at $44.49 billion, down from the previous year, reflecting challenges faced by the company in the current economic climate.
- Focus on Japan: Berkshire's investments in five Japanese trading companies totaled $194 billion in market value, representing nearly two-thirds of its $297.8 billion equity portfolio, yielding $2.5 billion in dividends, showcasing its strategic positioning in global markets.
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Wall Street Major Indexes Close Weakly Amid Market Concerns
- Market Weakness: The S&P 500 index closed 0.44% lower than the previous week and 0.87% lower than January, reflecting investor concerns about market outlook, particularly after President Trump's tariff announcement triggered a sell-off.
- Tech Stocks Under Pressure: Major tech stocks faced declines due to fears of an AI bubble, with American Express (AXP) dropping 10.77% following a research report, while Wells Fargo (WFC) retreated 8.17% amid risks associated with a failed UK mortgage firm.
- HSBC's Strong Performance: HSBC Holdings (HSBC) saw its stock rise 5.68% after reporting higher Q4 revenue and a dividend hike, indicating strong market performance and confidence in its future financial targets.
- Emerging Company Dynamics: Circle Internet Group (CRCL) surged 32.40% due to strong performance of its USDC stablecoin, while Nu Holdings (NU) reported record revenue but fell 14.55% due to a decrease in its efficiency ratio.
See More
Berkshire's New CEO Reaffirms Conservative Investment Culture
- Leadership Transition: Greg Abel's inaugural annual letter reassures that Berkshire Hathaway will uphold the financial conservatism established by Warren Buffett, ensuring the company's financial strength and capital discipline for the future.
- Cash Reserve Strategy: With a cash pile of $373.3 billion at the end of 2025, Abel views this as strategic dry powder, enabling swift responses to opportunities while maintaining the company's resilience.
- Equity Investment Management: Abel will directly oversee the equity portfolio, emphasizing a concentrated investment approach in a few American companies, with plans to 'significantly adjust' positions if long-term economic prospects change.
- Long-Term Commitment: Abel commits to managing Berkshire for the long term, stating that while he won't serve as CEO for 60 years like Buffett, he aims for shareholders and their descendants to be proud of the company's strength in 20 years.
See More
Berkshire Hathaway Reports Significant Decline in Q4 Operating Earnings
- Operating Earnings Decline: Berkshire Hathaway reported Q4 operating earnings of $10.2 billion, down 29% year-over-year, primarily due to weakness in its insurance business, highlighting challenges in its diversified operations.
- Insurance Business Losses: Insurance underwriting profits plummeted 54% to $1.56 billion, while investment income fell nearly 25% to $3.1 billion, reflecting pressures in the insurance market and its impact on overall profitability.
- Annual Overall Earnings Drop: Total overall earnings for 2025 fell to $66.97 billion from $89 billion the previous year, indicating volatility in investment performance and potential implications for shareholders.
- Cash Reserves Slightly Decrease: Despite no stock buybacks, Berkshire's cash reserves dipped from $381.6 billion to $373.3 billion, demonstrating a cautious approach to capital allocation and reflecting its strategy in navigating market fluctuations.
See More
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- Significant Performance Growth: American Express achieved total revenue of $72.2 billion in 2025, marking a 10% year-over-year increase, with earnings per share reaching $15.38, reflecting a robust demand and profitability after excluding one-time gains.
- Optimistic Future Outlook: Management projects revenue growth of 9% to 10% for 2026, with earnings per share expected between $17.30 and $17.90, implying approximately 14% growth at the midpoint, showcasing confidence in future performance.
- Aggressive Capital Return Program: In 2025, American Express returned $7.6 billion to shareholders, including $2.3 billion in dividends and $5.3 billion in share repurchases, demonstrating the company's commitment to rewarding investors and its financial strength.
- Credit Risk Monitoring Required: Despite strong performance, concerns over potential future credit losses could lead to stock volatility, necessitating investors to closely monitor economic conditions that may impact customer credit profiles to assess investment risks.
See More
American Express to Build New Headquarters at World Trade Center
- New Headquarters Construction: American Express plans to build a new global headquarters at the World Trade Center in lower Manhattan, expected to be completed by 2031, spanning nearly 2 million square feet over 55 floors and accommodating up to 10,000 employees, reinforcing the company's deep roots in New York City.
- Smart Building Technology: The new headquarters will incorporate smart-building technology and fully electric, energy-efficient systems, aiming for Leadership in Energy and Environmental Design (LEED) certification, showcasing the company's commitment to sustainability while enhancing employee work environments and productivity.
- Development and Design Partnership: The project is being developed by Silverstein Properties and designed by Foster + Partners, with construction slated to begin in spring 2026, further driving urban development and economic recovery in lower Manhattan.
- Financial Impact Statement: Although the total cost of the project has not been disclosed, American Express stated that it is not expected to have a material impact on its financial results, reflecting the company's confidence in future investments and commitment to the community.
See More
Berkshire Hathaway Leadership Transition and Earnings Report Analysis
- Leadership Transition: Gregory E. Abel steps into the CEO role, vowing to uphold the company's long-standing culture and capital discipline, despite the immense challenge of following Warren Buffett, indicating stability in leadership succession.
- Earnings Decline: Fourth-quarter operating earnings fell to $10.2 billion, a 29.8% decrease year-over-year, with full-year operating earnings at $44.49 billion, down from the previous year, reflecting challenges faced by the company in the current economic climate.
- Focus on Japan: Berkshire's investments in five Japanese trading companies totaled $194 billion in market value, representing nearly two-thirds of its $297.8 billion equity portfolio, yielding $2.5 billion in dividends, showcasing its strategic positioning in global markets.
- Core Insurance Business: Abel emphasized that the insurance segment remains Berkshire's financial engine, highlighting disciplined underwriting and long-term thinking as key pillars, indicating the company's strategic advantage in maintaining cash and Treasury holdings during market volatility.
See More
Wall Street Major Indexes Close Weakly Amid Market Concerns
- Market Weakness: The S&P 500 index closed 0.44% lower than the previous week and 0.87% lower than January, reflecting investor concerns about market outlook, particularly after President Trump's tariff announcement triggered a sell-off.
- Tech Stocks Under Pressure: Major tech stocks faced declines due to fears of an AI bubble, with American Express (AXP) dropping 10.77% following a research report, while Wells Fargo (WFC) retreated 8.17% amid risks associated with a failed UK mortgage firm.
- HSBC's Strong Performance: HSBC Holdings (HSBC) saw its stock rise 5.68% after reporting higher Q4 revenue and a dividend hike, indicating strong market performance and confidence in its future financial targets.
- Emerging Company Dynamics: Circle Internet Group (CRCL) surged 32.40% due to strong performance of its USDC stablecoin, while Nu Holdings (NU) reported record revenue but fell 14.55% due to a decrease in its efficiency ratio.
See More
Berkshire's New CEO Reaffirms Conservative Investment Culture
- Leadership Transition: Greg Abel's inaugural annual letter reassures that Berkshire Hathaway will uphold the financial conservatism established by Warren Buffett, ensuring the company's financial strength and capital discipline for the future.
- Cash Reserve Strategy: With a cash pile of $373.3 billion at the end of 2025, Abel views this as strategic dry powder, enabling swift responses to opportunities while maintaining the company's resilience.
- Equity Investment Management: Abel will directly oversee the equity portfolio, emphasizing a concentrated investment approach in a few American companies, with plans to 'significantly adjust' positions if long-term economic prospects change.
- Long-Term Commitment: Abel commits to managing Berkshire for the long term, stating that while he won't serve as CEO for 60 years like Buffett, he aims for shareholders and their descendants to be proud of the company's strength in 20 years.
See More
Berkshire Hathaway Reports Significant Decline in Q4 Operating Earnings
- Operating Earnings Decline: Berkshire Hathaway reported Q4 operating earnings of $10.2 billion, down 29% year-over-year, primarily due to weakness in its insurance business, highlighting challenges in its diversified operations.
- Insurance Business Losses: Insurance underwriting profits plummeted 54% to $1.56 billion, while investment income fell nearly 25% to $3.1 billion, reflecting pressures in the insurance market and its impact on overall profitability.
- Annual Overall Earnings Drop: Total overall earnings for 2025 fell to $66.97 billion from $89 billion the previous year, indicating volatility in investment performance and potential implications for shareholders.
- Cash Reserves Slightly Decrease: Despite no stock buybacks, Berkshire's cash reserves dipped from $381.6 billion to $373.3 billion, demonstrating a cautious approach to capital allocation and reflecting its strategy in navigating market fluctuations.
See More
