Summary by Futu AI
American Express delivered robust financial performance with net income reaching $10.1 billion, a 21% YoY increase, while total revenues grew 9% YoY to $65.9 billion. Earnings per share rose 25% YoY to $14.01, supported by an 18% increase in net interest income to $15.5 billion. The company's net interest yield improved to 8.3% from 8.1% previously.The loan portfolio showed mixed performance with consumer loans at $107.6 billion and small business loans at $32.0 billion. Credit quality metrics indicated some pressure, as consumer loan net write-off rates increased to 2.2% from 1.8%, while small business loan write-offs rose to 2.3% from 1.7%. The total reserve for credit losses was strengthened to $6.0 billion, up from $5.4 billion.The company maintained a strong deposit base of $139.4 billion, up from $129.1 billion, with uninsured deposits at $12.4 billion. Management emphasized their focus on sustainable growth amid rising credit costs, while maintaining a robust capital position with a targeted CET1 ratio of 10-11%. The enhanced risk management framework continues to support the company's strategic initiatives.
Today, after hitting the high near 24,000 in the early session and entering bearish positions, the index fell sharply by nearly over 600 points, immediately recouping yesterday's losses significantly.
Moreover, today it broke the new high again, reaching a maximum of 24,076, but by the end of the market, it fell back by about 70 points, producing a bearish candle. The current trend has not yet been broken, but from the previous low until now, it has risen close to 6,000 points. It is believed that those with positions can continue to hold until there is a clear trend reversal for profit-taking. Those without positions can wait for a pullback to get in. Actually, it is hoped for a quick pullback, as it allows for entry and also provides a healthy breath.
Currently, the outlook remains the same as before. It is believed that even if there is a pullback, it shouldn't be too deep. However, if Futures fail to stabilize and close below 22,350, there may still be room for decline. The chance of Futures falling below 21,400 in the short term should be low, so it is considered that if a significant pullback occurs, it presents a good opportunity to incrementally go long. Recently, there has been a consistent approach to not hold positions overnight, only focusing on immediate trades, as there is no high chasing and no casual short selling.
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