AXP down 7%+ afterhours on ....wait for it...wait for it... credit problems!!! hmmmm....can you say MAXED OUT!?!SWIPE goes the credit card.
p.s. ...COF is going down!!
p.s.s. Look to add "put power" on GRMN tomorrow....if GARMIN (GRMN) hits 80, ....GET ON THE SHORT BUS!
p.s.s.s. HOT @ $41 ..... up 5% today ... PUTS ON THE POP.
check out (HOTNI) ....buy puts...on the pop! down 25%+ today. BUY (HOTNI)! ....$4.90! .... "FEB 16, 2008 $45".... just need to get under 40.
2 comments:
Capital One shows credit woes firmly hitting consumer
Marketwatch - January 10, 2008 1:58 PM ET
Related Quotes
Symbol Last Chg
COF Trade 42.92 -0.43
DFS Trade 14.26 +0.08
AXP Trade 48.92 -0.16
NEW YORK (MarketWatch) -- Credit-card shares were among the top decliners in the financial sector Thursday after Capital One Financial Corp. lowered its earnings outlook and raised its loan loss reserves, with increasing clarity that the credit crisis sparked by careless home lending has spread to the consumer sector.
As delinquencies on subprime mortgages surged this year, there were initially few signs that similar problems were leaking into the credit-card industry. However, that changed in recent weeks as evidence, like Thursday's news from Capital One, shows that consumers loaded up on credit-card debt to make up for a loss in the purchasing power they once wielded by refinancing mortgages during the real-estate boom.
Capital One (COF) shares led all losers among financial stocks in the S&P 500 Index Thursday, and Discover Financial Services (DFS) and American Express Co. (AXP) also fell sharply.
Early Thursday, Capital One Financial Corp. cut its 2007 earnings view to $3.97 per share, below its previous forecast of $5, and said that it expects fourth-quarter earnings of 60 cents a share.
The McLean, Va.-based financial holding company said that the reduction was driven by increased provision expense and additional legal reserves established in the fourth quarter. See full story.
"Today's announcement by Capital One is really the first shoe to have dropped," said Celent analyst Red Gillen. "The wait is now on for the other shoe. We are now in the holiday-season hangover period, when consumers typically face larger than average credit-card bills. Given the economy's flirtation with recession, consumers' ability to repay these inflated bills is under more pressure than in previous years."
hotni up 30%!!
Taking some profits
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