Diamonds and Dogs
American Express (AXP) is flexing its muscle. The credit card company's stock is up 10% back to levels not seen since the start of the year following better than expected earnings. American Express beat earnings by 28 cents on in-line revenue thanks to strong demand from their affluent customer base and their spending power. The company raised estimates for the year and reaffirmed 2017 earnings guidance. The analyst at Compass Point upgraded the stock with a $74 price target.
Railroader gets derailed. Union Pacific (UNP) is down 6% following a miss in earnings and weak guidance. Third quarter business volumes, as measured by total revenue carloads, declined 6% while quarterly freight revenue decreased 7%. Looking forward, Union Pacific forecasted a further drop in volume due in part to the strong U.S. dollar and soft demand for consumer goods. The company went on to say the macroeconomic environment still has its challenges. Typically, a barometer of the overall economy, the rails or Union Pacific don't see any economic pick up any time soon.
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