Latest news with #StephenSqueri
Yahoo
15 hours ago
- Business
- Yahoo
No signs of consumer rot in US markets — for now
I have spent this earnings season doing three things. First, I am putting the new Yahoo Finance earnings call player through its paces. This is a great new feature on our platform, which you can access from the top of the company's ticker page during the earnings call. Second, I tried some new energy drinks I recently found at the Vitamin Shoppe. Always looking for that personal edge. And third, I'm hunting for signs of "consumer rot" to support a view that the stock market has gotten ahead of itself. I haven't found any, hence helping to explain why stocks are at records. As goes the US consumer, so goes the economy, and so goes the stock market! Or so I was told by my former boss 20 years ago during an office all-nighter. "I think people just want to live their lives, and that's what they're doing. I mean you're seeing a little less air travel, obviously, but people are still spending, and they are still traveling," American Express (AXP) CEO Stephen Squeri told me by phone on Friday. This came after the company posted a big second quarter and left its full-year outlook unchanged. Amex saw record card spending in the quarter. I continue to marvel at the strength of Amex every quarter, but maybe I shouldn't — it's one of Warren Buffett's oldest and most storied investments, right behind cane sugar soda-selling Coca-Cola (KO). Elsewhere, consumer rot is failing to pop up. Netflix (NFLX) called out "healthy member growth" as the key driver of its better-than-expected growth in the second quarter and guidance lift. The company has raised prices, and yet consumers haven't even blinked. Bring on "Happy Gilmore 2" on July 25! PepsiCo (PEP) CEO Ramon Laguarta told me by phone this week that consumers are responding to more affordable package sizes for beverages and snacks. Not exactly a ringing endorsement of consumer health, but shoppers seemed to be shunning those more affordable sizes last quarter. June retail sales data came in better than expected. I liked that the gains were dispersed across general merchandise stores and personal care stores. United Airlines (UAL) CEO Scott Kirby slipped in this comment on his earnings call this week: "Demand was weak for the last five months due to high levels of uncertainty for both businesses and consumers. I'm sure that's not a shocking thesis, but in the past few weeks, the level of uncertainty has declined. The tax situation is settled after the reconciliation bill passed. The geopolitical situation in the Middle East appears to have stabilized. And while tariffs are not yet certain, I think the market and most businesses have a much better read on how they'll manage in a narrower range of outcomes." "And encouragingly, that higher level of certainty has translated into a meaningful inflection point in demand," he added. For now, consumers appear to be handling tariff-related pricing hikes in stride. Surprising? Sure. But it's happening. "In the simplest language, the pig is coming through the python, but it's taking a lot longer to absorb the pig here. And maybe the negative effects of that trade war shock that we all have worried so much about, it's just going to take longer to play out," Apollo chief economist Torsten Sløk told me. (Disclosure: Yahoo Finance is owned by Apollo Global Management.) "The remarkable resilience of the economy that we've seen, especially here in the last few weeks, just continues to be very positive and very good," he said. Bottom line: As long as the consumer isn't rotting away, it will be hard to answer the phone calls of the bears. Trek on, bulls... for now. Yahoo Finance's Invest conference is coming up! Join me and the Yahoo Finance newsroom for our annual Invest conference, taking place in New York City, Nov. 12-13. The early list of speakers has been posted! And I can tell you from being in the trenches on this one, more market-moving folks will be added very soon. Come get up close and personal with them! And hey, come snap a pic with me too. Brian Sozzi is Yahoo Finance's Executive Editor and a member of Yahoo Finance's editorial leadership team. Follow Sozzi on X @BrianSozzi, Instagram, and LinkedIn. Tips on stories? Email
Yahoo
16 hours ago
- Business
- Yahoo
No signs of consumer rot in US markets — for now
I have spent this earnings season doing three things. First, I am putting the new Yahoo Finance earnings call player through its paces. This is a great new feature on our platform, which you can access from the top of the company's ticker page during the earnings call. Second, I tried some new energy drinks I recently found at the Vitamin Shoppe. Always looking for that personal edge. And third, I'm hunting for signs of "consumer rot" to support a view that the stock market has gotten ahead of itself. I haven't found any, hence helping to explain why stocks are at records. As goes the US consumer, so goes the economy, and so goes the stock market! Or so I was told by my former boss 20 years ago during an office all-nighter. "I think people just want to live their lives, and that's what they're doing. I mean you're seeing a little less air travel, obviously, but people are still spending, and they are still traveling," American Express (AXP) CEO Stephen Squeri told me by phone on Friday. This came after the company posted a big second quarter and left its full-year outlook unchanged. Amex saw record card spending in the quarter. I continue to marvel at the strength of Amex every quarter, but maybe I shouldn't — it's one of Warren Buffett's oldest and most storied investments, right behind cane sugar soda-selling Coca-Cola (KO). Elsewhere, consumer rot is failing to pop up. Netflix (NFLX) called out "healthy member growth" as the key driver of its better-than-expected growth in the second quarter and guidance lift. The company has raised prices, and yet consumers haven't even blinked. Bring on "Happy Gilmore 2" on July 25! PepsiCo (PEP) CEO Ramon Laguarta told me by phone this week that consumers are responding to more affordable package sizes for beverages and snacks. Not exactly a ringing endorsement of consumer health, but shoppers seemed to be shunning those more affordable sizes last quarter. June retail sales data came in better than expected. I liked that the gains were dispersed across general merchandise stores and personal care stores. United Airlines (UAL) CEO Scott Kirby slipped in this comment on his earnings call this week: "Demand was weak for the last five months due to high levels of uncertainty for both businesses and consumers. I'm sure that's not a shocking thesis, but in the past few weeks, the level of uncertainty has declined. The tax situation is settled after the reconciliation bill passed. The geopolitical situation in the Middle East appears to have stabilized. And while tariffs are not yet certain, I think the market and most businesses have a much better read on how they'll manage in a narrower range of outcomes." "And encouragingly, that higher level of certainty has translated into a meaningful inflection point in demand," he added. For now, consumers appear to be handling tariff-related pricing hikes in stride. Surprising? Sure. But it's happening. "In the simplest language, the pig is coming through the python, but it's taking a lot longer to absorb the pig here. And maybe the negative effects of that trade war shock that we all have worried so much about, it's just going to take longer to play out," Apollo chief economist Torsten Sløk told me. (Disclosure: Yahoo Finance is owned by Apollo Global Management.) "The remarkable resilience of the economy that we've seen, especially here in the last few weeks, just continues to be very positive and very good," he said. Bottom line: As long as the consumer isn't rotting away, it will be hard to answer the phone calls of the bears. Trek on, bulls... for now. Yahoo Finance's Invest conference is coming up! Join me and the Yahoo Finance newsroom for our annual Invest conference, taking place in New York City, Nov. 12-13. The early list of speakers has been posted! And I can tell you from being in the trenches on this one, more market-moving folks will be added very soon. Come get up close and personal with them! And hey, come snap a pic with me too. Brian Sozzi is Yahoo Finance's Executive Editor and a member of Yahoo Finance's editorial leadership team. Follow Sozzi on X @BrianSozzi, Instagram, and LinkedIn. Tips on stories? Email
Yahoo
16 hours ago
- Business
- Yahoo
No signs of consumer rot in US markets — for now
I have spent this earnings season doing three things. First, I am putting the new Yahoo Finance earnings call player through its paces. This is a great new feature on our platform, which you can access from the top of the company's ticker page during the earnings call. Second, I tried some new energy drinks I recently found at the Vitamin Shoppe. Always looking for that personal edge. And third, I'm hunting for signs of "consumer rot" to support a view that the stock market has gotten ahead of itself. I haven't found any, hence helping to explain why stocks are at records. As goes the US consumer, so goes the economy, and so goes the stock market! Or so I was told by my former boss 20 years ago during an office all-nighter. "I think people just want to live their lives, and that's what they're doing. I mean you're seeing a little less air travel, obviously, but people are still spending, and they are still traveling," American Express (AXP) CEO Stephen Squeri told me by phone on Friday. This came after the company posted a big second quarter and left its full-year outlook unchanged. Amex saw record card spending in the quarter. I continue to marvel at the strength of Amex every quarter, but maybe I shouldn't — it's one of Warren Buffett's oldest and most storied investments, right behind cane sugar soda-selling Coca-Cola (KO). Elsewhere, consumer rot is failing to pop up. Netflix (NFLX) called out "healthy member growth" as the key driver of its better-than-expected growth in the second quarter and guidance lift. The company has raised prices, and yet consumers haven't even blinked. Bring on "Happy Gilmore 2" on July 25! PepsiCo (PEP) CEO Ramon Laguarta told me by phone this week that consumers are responding to more affordable package sizes for beverages and snacks. Not exactly a ringing endorsement of consumer health, but shoppers seemed to be shunning those more affordable sizes last quarter. June retail sales data came in better than expected. I liked that the gains were dispersed across general merchandise stores and personal care stores. United Airlines (UAL) CEO Scott Kirby slipped in this comment on his earnings call this week: "Demand was weak for the last five months due to high levels of uncertainty for both businesses and consumers. I'm sure that's not a shocking thesis, but in the past few weeks, the level of uncertainty has declined. The tax situation is settled after the reconciliation bill passed. The geopolitical situation in the Middle East appears to have stabilized. And while tariffs are not yet certain, I think the market and most businesses have a much better read on how they'll manage in a narrower range of outcomes." "And encouragingly, that higher level of certainty has translated into a meaningful inflection point in demand," he added. For now, consumers appear to be handling tariff-related pricing hikes in stride. Surprising? Sure. But it's happening. "In the simplest language, the pig is coming through the python, but it's taking a lot longer to absorb the pig here. And maybe the negative effects of that trade war shock that we all have worried so much about, it's just going to take longer to play out," Apollo chief economist Torsten Sløk told me. (Disclosure: Yahoo Finance is owned by Apollo Global Management.) "The remarkable resilience of the economy that we've seen, especially here in the last few weeks, just continues to be very positive and very good," he said. Bottom line: As long as the consumer isn't rotting away, it will be hard to answer the phone calls of the bears. Trek on, bulls... for now. Yahoo Finance's Invest conference is coming up! Join me and the Yahoo Finance newsroom for our annual Invest conference, taking place in New York City, Nov. 12-13. The early list of speakers has been posted! And I can tell you from being in the trenches on this one, more market-moving folks will be added very soon. Come get up close and personal with them! And hey, come snap a pic with me too. Brian Sozzi is Yahoo Finance's Executive Editor and a member of Yahoo Finance's editorial leadership team. Follow Sozzi on X @BrianSozzi, Instagram, and LinkedIn. Tips on stories? Email
Yahoo
a day ago
- Business
- Yahoo
Amex Q2 results prove it's still the heavyweight of high-end cards
With its complex web of travel perks, airport lounges, and points, the premium credit card scene is more competitive than ever. This new tax deduction in Trump's 'big, beautiful bill' lets people cash in on charitable donations up to $2,000. Here's what to know These are the 3 best questions to ask at the end of your job interview Ikea is launching new smart home products, and they're designed to be extra easy to use But if the competition is heating up, luxury card stalwart American Express isn't feeling it. The credit card company just beat profit expectations in its second quarter earnings, a feat powered by strong spending that shows Amex cardholders aren't jumping ship for rivals. With markets unstable and tariffs flying, Amex's laser focus on wealthy customers likely provides a buffer against financial forces that can put a drag on lower income spenders. 'We saw record Card Member spending in the quarter, demand for our premium products was strong,and our credit performance remained best in class,' American Express CEO Stephen Squeri said. The company's billed business for the quarter was $416.3 billion, besting analyst estimates of $412.8 billion in card member spending. Total revenue was up 9% to $17.9 billion, an increase the credit card issuer attributed to more customer spending, card feed growth, and higher income from revolving loan balances. Fending off the competition American Express is the old guard among premium rewards cards, but the company knows it needs to keep things fresh to stay competitive. The company recently announced its biggest card refresh to date, with reimagined perks designed to court the Gen Z and millennial cardholders who make up more than a third of its U.S. consumer spending. 'We're going to take these Cards to a new level, not only in what they offer in travel, dining, and lifestyle benefits, but also in how they look and feel, to meet the evolving needs of our customers,' American Express Group President of U.S. Consumer Services Howard Grosfield said. Amex isn't sharing the specifics of its Platinum Card revamp yet, but other changes on the way soon reveal the company's preference for bespoke perks designed to smooth air travel's many jagged edges. As Fast Company reported, Amex will roll out a pair of luxe updates that exemplify how the company plans to bolster its premium strategy. First, its Centurion Lounges will soon be revamped with rotating menus from James Beard Award-winning chefs, part of its new 'Culinary Collective.' All 15 Centurion Lounges in the U.S. will feature the new menu items starting at the end of the month. 'You'd be lucky to get into each of their restaurants on a normal day,' American Express Travel President Audrey Hendley told Fast Company. 'Now, you can try them all in one trip.' Amex will also launch Sidecar, a new kind of lounge tailored to the needs of travelers seeking a short-term sanctuary, next year in Las Vegas's Harry Reid International Airport. The lounge will offer small plates and table-side service designed to fit into a limited time slot. 'We're seeing a significant segment of travelers who only spend 30 to 45 minutes in the lounge,' Hendley told Fast Company. 'Sidecar is our way of honoring that time with the same level of care and service. In the battleground of premium perks, everyone is vying to offer a little something special. Chase recently revamped its famed Sapphire Reserve card with a set of new travel credits and a higher annual fee. Citi is launching its own new premium card, the Citi Strata Elite, later this year to lure affluent customers away from the competition. If those challengers pose a real threat to Amex, you wouldn't know it. 'Bring it on,' AmEx Chief Financial Officer Christophe Le Caillec told Reuters. 'We've been in that space for decades and we have built assets that our competitors do not have.' This post originally appeared at to get the Fast Company newsletter: Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 days ago
- Business
- Yahoo
AmEx execs were asked about the upcoming Platinum card changes and crowding concerns at lounges — here's what they said
American Express execs were asked about Platinum card fees and crowded lounges on an earnings call. The current annual fee is $695, which is still less than that of the Chase Sapphire Reserve card. Executives also said they expect "more innovation" in airport lounges and acknowledged crowding issues. Few details have come out about the coming updated American Express Platinum Card — including how much it will cost, as the world of premium credit cards gets ever glitzier. The company's CEO and chief financial officer were asked about card fee growth on a second-quarter earnings call on July 18. "Given the previous conversations that we had about the timing of the platinum fee increase, it's only sometime in the new year, in 2026, that you should see that inflection point and a bit more acceleration," CFO Christophe Le Caillec said on the call. He added that card fee growth rates will likely "moderate" within the balance of this year. A representative for American Express declined to comment. Currently, the Amex Platinum Card has an annual fee of $695, which is less than the $795 yearly fee for the Chase Sapphire Reserve credit card. Amex promised an update on the Platinum card later this year and said more details would come in the fall. Some have speculated that the fee on the revamped Platinum card could reach $1,000. "Anybody who thinks that we're refreshing the product in response to what our competitors are doing is crazy," CEO Stephen Squeri said on the call. "We have our own schedule." Current cardholders get a range of perks, including access to certain airport lounges and other travel credits. As those lounges continue to boom in popularity, Amex executives were also asked about overcrowding concerns and competition from airlines and other credit cards. "We're trying to make the lounges bigger," Squeri said on the call. "I think this whole lounge game has been a boom for airport authorities in terms of how many lounges they can put in." He mentioned a new, smaller "sidecar" lounge in Las Vegas, where cardholders can pop in for a quick drink, and said Amex works closely with its partner Delta to try and deal with the crowds. "I think you'll continue to see more innovation here," Squeri added. "You'll look at more expansion of existing lounges where we can get space. And you'll look at a strategy that looks at satellite locations so that, you know, we can handle the demand that we get." The company's second-quarter revenue minus interest expense was $17.9 billion, rising 9% year-over-year, according to a press release. The growth was driven in part by increased spending and "continued strong card fee growth," Amex said in the release. Amex's stock was down more than 2.3% by the time the market closed. Squeri emphasized the company's focus on premium users in the press release, saying demand is strong and teasing the coming Platinum "refresh." The question of exactly how much that "refresh" will cost, though, remains to be answered. Read the original article on Business Insider
