Tag Archives: American Express Co

Dow gains 150 points, heads for winning week as 2023 comeback rally marches on

A trader works on the trading floor at the New York Stock Exchange (NYSE) in New York City, January 26, 2023.

Andrew Kelly | Reuters

Stocks rose Friday, and all the major averages headed for a winning week fueled by better-than-expected economic growth and a pop in market-darling Tesla.

The S&P 500 gained 0.4%, while the Nasdaq Composite added 0.56%. The Dow Jones Industrial Average was last up 135 points, or 0.4%.

Earnings season continued, with Intel slumping more than 8% following a dismal earnings report that missed on the top and bottom lines. Strong guidance boosted American Express 9% despite a top-and bottom-line miss.

All the major averages are positive for the week and month. The Dow and the S&P 500 have gained 1.7% and 2% this week, respectively. The Nasdaq is up 3.2% on the week and is set to notch its best monthly performance since July. The Nasdaq has gained the last four weeks. Tesla rose 3% Friday, building on a 24% weekly gain on the back of an earnings beat.

So far this year, markets have bucked 2022’s selloff trend. The Dow is up 2.8%, while the S&P has gained 6.1%. The Nasdaq has surged more 10.6%

“This year’s stock market rally is impressive and shouldn’t be ignored,” Chris Zaccarelli, chief investment officer for the Independent Advisor Alliance said in a Thursday note. “Unfortunately, the Fed is likely to start talking down the market again, as early as next week, so prepare for volatility again this year; we may be in the eye of the hurricane and not completely out of the woods yet.”

Investors digested more economic data ahead on next week’s Federal Reserve policy meeting. The personal consumption expenditures price index, a preferred inflation measurement for the Fed, showed prices rise 4.4% from a year ago, the Commerce Department said. That was in line with the Dow Jones estimate.

It’s some of the last data ahead of the central bank’s next interest-rate decision. Investors are currently expecting a 25 basis point hike.

Stocks are coming off a positive session. Investors cheered a better-than-expected fourth quarter gross domestic product report that stoked hopes that the U.S. economy can experience a soft landing as the central bank hikes rates to tame inflation.

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Intel, Chevron, American Express, Silvergate and more

Intel said April 5, 2022 that it has suspended all business operations in Russia.

Paco Freire/Sopa Images | Lightrocket | Getty Images

Check out the companies making headlines before the bell:

Intel — The chipmaker suffered a 9% loss in its shares in early morning trading after its latest financial results missed analysts’ estimates and showed significant declines in the company’s sales, profit and gross margin. The company also forecasted a loss for the current quarter.

Advanced Micro Devices — Chip stocks such as Advanced Micro Devices fell as a group following Intel’s results. Shares of Advanced Micro Devices fell nearly 2.4%, while shares of Nvidia and Micro dipped about 1.5% each.

Chevron — Shares dipped more than 1% after Chevron reported its latest earnings results. The oil producer missed earnings expectations, but topped revenue forecasts, according to consensus estimates from Refinitiv. The shares had gained on Thursday after Chevron raised its dividend and announced a buyback plan.

American Express — Shares of the credit card company rose 5% despite weaker-than-expected results for the fourth quarter. American Express reported $2.07 in earnings per share on $14.18 billion of revenue. Analysts surveyed by Refinitiv were looking for $2.22 per share on $14.22 billion of revenue. However, American Express’ guidance for 2023 was better than anticipated for earnings and revenue. Also, AMEX said it would be increasing its dividend by 15%.

Ralph Lauren — Shares fell more than 3% after BMO Capital Markets downgraded the stock to underperform. The investment firm said Ralph Lauren’s recent rally has gone too far.  

Chewy — Chewy shares rose more than 4% after Wedbush upgraded the stock to outperform from neutral.

Silvergate Capital — The bank to crypto businesses slid about 8% after the company suspended payments on its Series A preferred stock dividend, in an effort to preserve capital as it navigates recent crypto market volatility. The stock has been falling since November, after crypto exchange FTX, for whom Silvergate held deposits, collapsed in scandal.

Visa — The payment network operator reported strong financial results for its most recent quarter, including adjusted earnings per share of $2.18 and revenue of $7.94 billion. Analysts expected $2.01 per share in adjusted earnings and $7.70 billion in revenue, according to Refinitiv. Visa shares rose about 1% in premarket trading.

Hasbro — Shares of the toy maker slid more than 5% after the company said it would eliminate around 1,000 employee positions and warned of weak holiday-quarter results. The layoff of around 15% of its global workforce comes as the company seeks to save between $250 million and $300 million annually by the end of 2025.

KLA — Chip maker KLA Corporation declined about 4.6% after issuing weaker-than-expected forward guidance for its fiscal third quarter. Otherwise, KLA reported a beat on earnings and revenue expectations.

— CNBC’s Tanaya Macheel, Yun Li and Jesse Pound contributed reporting

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Airline perks and elite status will be harder to earn this year

The new Delta SkyClub at Los Angeles International Airport (LAX), Terminals 2 and 3 where the reimagined state-of-the-art facilities will soon welcome millions of guests each year.

Media News Group | Long Beach Press-Telegram via Getty Images

When United Airlines gate agents call the first boarding group, Ted Cohen notices something he never saw in his decades crossing the globe as a music industry executive: crowds.

The “preboarding” group includes members of United Global Services, an invitation-only status for top customers, and United Premier 1K, an upper-level tier in the airline’s Mileage Plus frequent flyer program.

“It used to be two or three people, and you used to say, ‘Who is that?’ And now it’s a small army,” said Cohen, who leads a digital entertainment consulting firm and has lifetime elite status on United and American Airlines.

Welcome to air travel’s era of mass luxury.

Travelers willing to shell out more for tickets and popular rewards credit cards are swelling ranks in front cabins and airport lounges. Now airlines are trying to handle the surge of big spenders — without compromising the appeal of their lucrative loyalty programs and most expensive seats. This year, not everyone will make the cut.

The largest U.S. carriers — Delta Air Lines, American and United — are raising spending requirements to earn some elite frequent flyer tiers that grant free upgrades, early boarding, discounted or complimentary lounge memberships and other perks.

Executives say the richer requirements are the product of the pandemic. Airlines had extended frequent flyer status without requiring travelers to meet the usual annual thresholds because would-be passengers were sidelined. In the meantime, customers kept spending on their rewards credit cards, racking up points and perks along the way.

“We feel like we’re royals even though we’re not rich at all,” said Damaris Osorio, a 27-year-old based in New York who runs a vintage clothing business.

Osorio frequents airport lounges on trips booked with rewards points that she earned through strategic credit card use and sign-up bonuses. Last year she and her fiance traveled to Brazil, Chile, Argentina and Italy, all on flights she paid for with points.

She said she cares little about sitting in the front of the plane, but has a preference for the American Express Centurion Lounges, which she gets into with one of her Amex cards. Osorio realizes she’s not alone.

“You notice how much busier it’s getting at the lounges,” she said. “I go as early as possible to maximize what I’m taking away.”

Next month, Amex Platinum cardholders will be charged $50 for each guest they bring to a Centurion Lounge. Those cardholders can currently bring in two guests for free.

‘If everyone is special, no one feels special’

For the airlines, hordes of high spenders are a good problem to have two years after the pandemic drove them into a $35 billion hole, despite billions in taxpayer aid. Airlines are profitable again, with travel roaring back and flyers who are willing to pay up for a little bit more space or privacy on their trip.

Airlines’ lucrative credit card partnerships helped them stay afloat in the pandemic. They sell miles to credit card companies, and bringing in billions of dollars.

Now they have a lot of travelers itching to cash in rewards.

If they call biz class boarding and it’s like the start of the Indy 500 … it’s not going to be a pleasant experience.

Henry Harteveldt

founder of Atmosphere Research Group

Delta said in an investor presentation last month that premium products and non-ticket revenue will make up 57% of its sales this year, up from 44% in 2014 and 53% in 2019, before the pandemic. That category includes revenue from top-end international business-class seats, extra-legroom seats and other sources, such as its partnership with American Express.

After some customers complained about crowds and long lines at its Sky Club airport lounges, Delta said late last year that it will raise the prices and the requirements to gain access to those facilities. Earlier in 2022, it also instituted a three-hour time limit for lounge use and created a VIP line for high-status holders.

CEO Ed Bastian said recent policy changes aim to address pandemic-era status extensions and the rise of customers spending more for travel.

“We’ve got to address that in some way to be fair to everybody, because as they say, ‘If everyone’s special, no one feels special,'” Bastian said in an interview last month. “We’re trying to do it in a fair way.”

United’s chief customer officer, Linda Jojo, put it similarly at a recent industry conference. “If everybody has status then nobody has status,” she said.

In November, United said it was raising the requirements to earn status and perks.

United also opened a new mini-lounge at its hub at Denver International Airport, catering to customers on the go who are flying on regional feeder jets, a move that could help free up space in larger facilities for travelers hanging out longer.

United Airlines Polaris lounge at Newark Liberty International Airport

Leslie Josephs | CNBC

Last month, American Airlines said customers will have to spend or fly more to reach the lowest elite tier in its AAdvantage frequent flyer program. Customers will soon need 40,000 so-called loyalty points instead of 30,000 for Gold status.

Bigger space for big spenders

Delta, American, United and American Express have been opening bigger airport lounges to fit more travelers.

American and its trans-Atlantic partner British Airways in November opened new, high-end lounges at John F. Kennedy International Airport with showers, bars and lots of workspace. The three lounges roughly double the square feet that American previously offered at JFK to about 65,000 square feet, an airline spokeswoman said.

“There’s a tremendous demand for it, and we got to make sure that we are taking care of customers how they want to be taken care of,” American Airlines CEO Robert Isom said at the JFK lounge opening.

Several full-service carriers have also moved away from long-haul first class cabins in favor of more premium economy seats — in between business-class and standard coach seats — and larger business-class cabins that fit scores of travelers, particularly on long flights.

Many of the newer business-class seats are roomier and come with more amenities than first-class seats of the past.

A new American Airlines and British Airways lounge at John F. Kennedy International Airport, November 29, 2022.

Leslie Josephs | CNBC

American Airlines is planning to get rid of a separate first class on some older planes used to fly longer routes in favor of a single, expanded, business class featuring new suites with doors.

The airline said premium seats on its long-haul fleet will increase by more than 45% by 2026.

But with the expansion of that cabin comes the risk of diluting the premium feel, said Henry Harteveldt, a former airline executive and founder of Atmosphere Research Group.

“If they call biz class boarding and it’s like the start of the Indy 500 and you have 70 people jostling to get down the jet bridge, it’s not going to be a pleasant experience,” he said.

‘I don’t sit behind the wing’

With demand still strong, redeeming miles for flights this year might cost more.

Michael Calarco, a part-time consultant who helps travelers book trips with their rewards points, said it’s been harder to find seats lately because planes are flying so full after travel restrictions lifted, including to international destinations.

He recommends flyers be as flexible as possible with their dates if they want to cash in their points for a trip, and to avoid major holidays.

“There’s not much I can do if someone wants to go to the Maldives two months away,” he said.

Some travelers say comfort is worth cashing in chunks of the points they’ve been sitting on.

“I don’t sit behind the wing,” said Mark Ophaug, 40, who works at an educational technology company and has a top-tier status with United’s Mileage Plus program. He and his husband are planning to visit his in-laws in Buenos Aires this year and plan to use United PlusPoints to upgrade to lie-flat seats.

“It’s a long flight, and I want to lie down,” Ophaug said.

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Payments giants to apply new code identifying sales at U.S. gun stores

Fire arms are seen at the Bobâs Little Sport Gun Shop in the town of Glassboro, New Jersey, United States on May 26, 2022. 

Tayfun Coskun | Anadolu Agency | Getty Images

Visa, the world’s largest payments processor, said on Saturday it will implement a new merchant category code for U.S. gun retailers, which will identify transactions at firearms stores.

The International Organization for Standardization (ISO) approved creation of the merchant code on Friday following pressure from gun-control activists who say it will help track suspicious weapons purchases.

“Following ISO’s decision to establish a new merchant category code, Visa will proceed with next steps, while ensuring we protect all legal commerce on the Visa network in accordance with our long-standing rules,” Visa said in a statement.

Mastercard said on Friday that following ISO’s approval, “we now turn our focus to how it will be implemented by merchants and their banks as we continue to support lawful purchases on our network while protecting the privacy and decisions of individual cardholders.”

American Express said when ISO develops a new code, the company will work with third-party processors and partners on implementation.

The code will show where an individual spends money but not what items were purchased.

Several top U.S. pension funds including those for government workers in New York City and California had submitted shareholder resolutions asking payment companies to weigh in on the issue.

Some gun-rights activists have worried the new code could lead to unauthorized surveillance.

Mass shootings this year, including at a Texas elementary school that killed 19 children and two teachers, have added to the long-running U.S. debate over gun control.

U.S. President Joe Biden has called for Congress to pass an assault weapons ban as well as $37 billion for crime prevention programs, with $13 billion to hire and train an additional 100,000 police officers over the next five years.

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Why is the stock market falling? Dow drops nearly 900 points as investors weigh Fed’s policy path, earnings

U.S. stocks fell sharply Friday, as investors continued to weigh hawkish comments on interest rates by Federal Reserve Chairman Jerome Powell a day earlier, as well as a fresh batch of corporate earnings that largely disappointed.

How are stocks trading?
  • The Dow Jones Industrial Average
    DJIA,
    -2.18%
    was down 879 points, or 2.5%, at 33,914.
  • The S&P 500
    SPX,
    -2.18%
    fell 107 points, or 2.4%, to 4,286, and was on track for a third straight weekly fall.
  • The Nasdaq Composite
    COMP,
    -2.03%
    shed 298 points, or 2.3%, to trade at 12,875.

On Thursday, the Dow shed 368.03 points, or 1.1%, reversing a gain of as much as 331.43 points in intraday trading. The more-than 700-point intraday swing was its biggest since March 8, according to Dow Jones Market Data. The S&P 500 fell 1.5%, while the Nasdaq Composite slumped 2.1%.

What’s driving the market?

Stock-market weakness picked up Friday where Thursday’s selloff left off, when equities tumbled into the afternoon after Powell added his support for moving faster on raising interest rates to cool inflation, measures that would include a possible 50 basis point interest rate hike in May.

“It would seem investors have been too complacent about the upcoming [Fed] meeting, which will need to change,” said Michael Kramer, founder of Mott Capital, in a note.

The Cboe Volatility Index
VIX,
+20.55%,
an options-based measure of expected volatility over the next 30 days, had been too low heading into the May 3-4 Federal Open Market Committee, or FOMC, meeting, Kramer said. It rose Thursday and was up another 19.5% at 27.1- on Friday, moving above its long-term average just below 20.

Powell’s remarks appeared to make a half percentage point rate hike the base case, with the central bank also likely to announce the beginning of the unwinding of its balance sheet, Kramer said.

Meanwhile, traders of fed funds futures have priced in a 94% chance that the Federal Reserve will deliver a 75 basis point rate hike in June, up from 70% on Thursday and 28% a week ago, according to the CME FedWatch Tool. 

The benchmark 10-year Treasury yield 
TMUBMUSD10Y,
2.895%,
meanwhile, pulled back slightly to around 2.89% after climbing about 8.1 basis points to 2.917% on Thursday, the highest since Dec. 4, 2018.

Read: How to invest as inflation, higher interest rates and war roil markets

And some are warning that the Nasdaq is looking particularly vulnerable. The week has delivered some big earnings news for the technology sector, with investors cheering Thursday’s results from Tesla
TSLA,
-0.12%,
on the heels of deeply disappointing Netflix
NFLX,
-0.91%
results.

The Fed’s hawkish shift and the relentless rise in Treasury yields may be sapping the previous appeal of equities, which had previously been seen as the only viable avenue for many return-seeking investors.

“Investors appear to be moving away from the TINA (There is no Alternative) narrative as of late when it comes to equities,” said Brian Price, head of investment management at Commonwealth Financial Network, in a note. “This is the second straight week of significant outflows from equity mutual funds and days like today are unlikely to change the sentiment moving forward. The one positive takeaway may be that sentiment has become too bearish and we could see a countertrend rally at some point in the coming weeks.”

In One Chart: Investors just pulled a massive $17.5 billion out of global equities. They’re just getting started, says Bank of America.

All 11 major S&P 500 sectors fell Friday, with healthcare stocks dropping the most after a downbeat profit forecast from HCA Healthcare Inc.
HCA,
-20.47%
sent its shares tumbling. Other hospital operators, including Tenet Healthcare Corp.
THC,
-13.49%,
Community Health Systems Inc.
CYH,
-17.36%
and Universal Health Services
UHS,
-12.70%
also fell between 10.4% and 13.2%.

However, of the 99 companies in the S&P 500 that have reported earnings for the first quarter, 77.8% of them have beat market expectations. Typically, 66% of companies beat estimates, according to Refinitiv data.

Next week will mark another big week for earnings, with 558 companies reporting, Saxo noted. “It is the big test of companies’ ability to pass on costs to their customers,” they said.

Investors may also be skittish ahead of the final round of France’s presidential election on Sunday. An upset victory by far-right candidate Marine Le Pen over incumbent Francois Macron would likely spark market volatility, analysts said.

See: Here’s how markets are positioned for Sunday’s presidential election in France between Macron and Le Pen

What companies are in focus?
  • HCA shares were down 19.6%, on pace for their largest percentage decrease since March 16, 2020, when they fell 19.02%, according to Dow Jones Market Data.
  • Gap Inc.
    GPS,
    -18.51%
    stock tumbled nearly 19%, following a bigger-than-expected drop in sales and as the retailer announced the depature of Old Navy CEO Nancy Green.
  • Shares of Qualtrics International Inc.
    XM,
    -9.41%
    fell 9.5% after the experience-management software company reported fiscal first-quarter forecast-beating revenue.
  • Snap Inc.
    SNAP,
    -0.27%
    shares lost 0.7% after the social media group reported quarterly revenue that fell short of Wall Street’s expectations.
  • Shares of American Express Co.
    AXP,
    -1.87%
    fell 1.4% after topping earnings expectations Friday amid a continued rebound in travel and strong spending trends among younger consumers.
  • Verizon Communications Inc.
    VZ,
    -5.30%
    fell after its earnings report showed a net loss of postpaid phone subscribers in its latest quarter, calling out “competitive dynamics within the industry,” though it said it had its best quarter of broadband net additions in more than a decade.
How are other assets trading?
  • The ICE U.S. Dollar Index 
    DXY,
    +0.56%
     rose 0.7% to trade at its highest since March 2020.
  • Bitcoin 
    BTCUSD,
    -2.51%
    fell 2.4% to trade near $39,500.
  • The U.S. oil benchmark
    CL.1,
    -1.90%
     fell $1.72, or 1.7%, to settle at $102.07 a barrel on the New York Mercantile Exchange, falling 4.1% for the week.
  • Gold
    GC00,
    -0.60%
    fell $13.90, or 0.7%, to settle at $1,934.30 an ounce, leaving a 2.1% weekly fall.
  • The Stoxx Europe 600
    SXXP,
    -1.79%
    dropped 1.5% while London’s FTSE 100 
    UKX,
    -1.39%
    fell 1.4%.
  • The Shanghai Composite 
    SHCOMP,
    +0.23%
     rose 0.2%, while the Hang Seng Index 
    HSI,
    -0.21%
    slipped 0.2% in Hong Kong and Japan’s Nikkei 225 
    NIK,
    -1.63%
    fell 1%.

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HCA Healthcare, Kimberly-Clark, Gap and more

Pedestrians pass in front of a GAP store in New York.

Scott Mlyn | CNBC

Check out the companies making headlines in midday trading Friday.

American Express — Shares of the payment firm dipped 1.1% despite American Express topping earnings expectations for the first quarter. American Express reported a profit of $2.73 per share, versus the Refinitiv consensus estimate of $2.44 per share. Earnings got a boost from spending by millennials and Gen-X consumers, the company said.

Verizon Communications — Shares of Verizon fell 6.1% after the company reported a loss of 36,000 monthly phone subscribers during the first quarter, compared with a FactSet estimate of a 49,300 loss. Verizon also posted earnings and revenue for the quarter that were in line with Wall Street forecasts.

HCA Healthcare, Universal Health Services, Intuitive Surgical — The health-care sector was under pressure Friday, with HCA Healthcare as its greatest laggard after reporting disappointing full-year earnings and revenue guidance. HCA dropped 19%, Universal Health Services tumbled 13%, and Intuitive Surgical declined about 13%.

SVB Financial Group — Shares for the regional bank soared more than 11% after the company reported strong earnings. SVB Financial Group earned an adjusted $6.22 per share, compared with a consensus estimate of $5.60 from FactSet. The company’s net interest income also beat expectations.

Kimberly-Clark Corporation — Shares for the consumer products company spiked nearly 9% after Kimberly-Clark exceeded earnings expectations. The firm earned $1.35 per share in its most recent quarter, versus consensus estimates of $1.23 per share from Refinitiv. Kimberly-Clark also raised its full-year organic sales forecast.

Schlumberger — Shares jumped more than 3% after the oilfield services producer beat earnings expectations. Schlumberger earned 34 cents per share, versus analyst expectations of 33 cents per share. Schlumberger also hiked its dividend by 40%.

Gap — Shares for the retailer fell about 20% after Gap announced the chief executive officer of its Old Navy business, Nancy Green, is leaving the firm this week. Gap also cut its outlook for net sales growth this fiscal year.

— CNBC’s Tanaya Macheel contributed reporting.

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American Express, Verizon, Kimberly-Clark and more

Check out the companies making headlines before the bell:

American Express (AXP) – American Express rose 1.2% in the premarket after reporting better-than-expected profit and revenue for the first quarter. Amex reported a profit of $2.73 per share compared with the $2.44 consensus estimate, helped by increased spending by millennial and Gen-X consumers as well as small and medium-sized businesses.

Verizon (VZ) – Verizon earned an adjusted $1.35 per share for the first quarter, matching estimates, with revenue also essentially in line. Verizon lost 36,000 phone subscribers during the quarter, less than the 49,300 losses expected by analysts who were surveyed by FactSet. Verizon fell 1.4% in premarket trading.

Kimberly-Clark (KMB) – The consumer products company’s shares jumped 3.8% in the premarket after reporting better-than-expected quarterly earnings and revenue. Kimberly-Clark said it was able to deal with a “volatile and inflationary” environment and raised its full-year organic sales forecast.

Cleveland-Cliffs (CLF) – The steel producer and mining company’s stock rallied 3.5% in premarket trading after beating top and bottom-line estimates for the first quarter. Cleveland-Cliffs also raised its average selling price forecast for the full year.

Schlumberger (SLB) – The oilfield services producer beat estimates by a penny with an adjusted quarterly profit of 34 cents per share, and revenue also topped Wall Street forecasts. Schlumberger also raised its dividend by 40%, and its stock added 1.1% in premarket action.

Snap (SNAP) – Snap lost an adjusted 2 cents per share for its latest quarter, compared with consensus forecasts of a 1 cent per-share profit for the social media company. It also issued a conservative sales growth outlook for the current quarter, and the shares fell 1.1% in premarket trading.

Gap (GPS) – Gap cut its sales growth outlook amid increasing competition and more promotions. The company also announced that Old Navy President and CEO Nancy Green is departing. Gap stock tumbled 14.8% in the premarket.

Anheuser-Busch InBev (BUD) – AB InBev will sell its stake in its Russian joint venture and take a $1.1 billion impairment charge as a result. The beer brewer suspended sales of its Budweiser brand in Russia last month following Russia’s invasion of Ukraine. AB InBev fell 1.8% in premarket action.

SAP (SAP) – SAP shares slid 4.1% in premarket trading after the German business software company said it would take a $300 million revenue hit due to its exit from the Russian market.

Boston Beer (SAM) – Boston Beer reported a quarterly loss of 16 cents per share, compared with analysts’ expected profit of $1.97 per share. The beer brewer’s revenue missed estimates as shipment volume declined more than 25% from a year earlier and gross margins fell as well. Shares were down 3.2% in the premarket.

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Some of the first quarter’s biggest losers could be the biggest steals, Jim Cramer says

Investors should consider purchasing stock of the first quarter’s biggest losers if the market shows signs of recovering on its own, CNBC’s Jim Cramer said Monday.

“This market’s screaming that we’re headed for a [Federal Reserve]-mandated slowdown, that could possibly become a Fed-mandated recession,” the “Mad Money” host said. “If we get more signs that inflation is cooling on its own, like the pullback in oil, then some of the hardest hit stocks might end up looking pretty enticing.”

The first quarter of 2022 was marked by rampant volatility. Russia’s ongoing invasion of Ukraine in February sent commodities prices including oil skyrocketing, while in March the Fed took its first interest rate hike in three years in an attempt to tamp down rising prices. Global Covid outbreaks last month also caused supply chain snarls as factories in key areas like China were forced to shutter.

Fed Chair Jay Powell in late March vowed to take strong action against inflation as needed. 

Adding to the speculative market environment, a key part of the Treasury yield remained inverted on Monday after 2-year and 10-year Treasury yields shifted last week, heightening concerns about a possible recession coming. While inversions have historically preceded some economic recessions, they are not guaranteed indicators.

Cramer said that energy stocks performed the best during the first quarter due to soaring prices, while “recession-resistant” utility stocks also rallied. Cramer also listed the first quarter’s biggest winning and losing companies that are listed in the Dow Jones Industrial Average, S&P 500 and Nasdaq 100.

Here are the winners and losers:

Dow Jones Industrial Average

Winners

Losers

S&P 500

Winners

Losers

Nasdaq 100

Losers

Disclosure: Cramer’s Charitable Trust owns shares of Chevron, Salesforce, Halliburton, Meta

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Remote work shift made new business travel segment

American Express expects remote workers to create new demand for business travel, CEO Steve Squeri told CNBC’s Jim Cramer on Wednesday.

“You’re going to have, I believe, a lot more internal travel where colleagues and employees will come into the headquarters to be with their team for a few days. And they may do that multiple times a year. So I think that part of business travel will be a new piece.” Squeri said in an interview on “Mad Money.”

Travel has recovered faster than expected this year, which major airlines expect will help offset higher costs in things like jet fuel. Travelers spent $6.6 billion on airline tickets last month on carriers’ websites, according to Adobe.

Squeri said that American Express has seen growth in leisure travel over the last few months.

“We’re at 80% overall [travel and expenses] in the fourth quarter with consumer over 100% from 2019 levels. When we look at our travel bookings, our travel bookings were up in December … and that has sequentially grown in January and in February,” he said, adding that the numbers only encompass consumer travel.

Squeri said Russia’s invasion of Ukraine has “not really” affected travel volumes for American Express.

The payments company announced it was suspending business in Russia on March 6, becoming one of the hundreds of other companies who also pledged to suspend or curtail business in the country. 

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Amazon and Visa reach global truce over credit card fees

Visa payment cards laid out on a computer keyboard.

Matt Cardy | Getty Images

Amazon has reached a global agreement with Visa to settle a dispute over the credit card giant’s fees.

The deal means Amazon customers in the U.K. can continue using Visa credit cards, as previously announced by the two companies. Amazon will also drop a 0.5% surcharge on Visa credit card transactions in Singapore and Australia, which it introduced last year.

Last month, Amazon said it had dropped plans to stop accepting Visa credit cards in Britain, two days before the change was expected to take place. The companies said at the time that they would continue talks on a broader resolution to their spat.

“We’ve recently reached a global agreement with Visa that allows all customers to continue using their Visa credit cards in our stores,” an Amazon spokesperson told CNBC via email. “Amazon remains committed to offering customers a payment experience that is convenient and offers choice.”

Amazon has been piling pressure on Visa to lower its fees, in a series of moves that signaled growing frustration from retailers over the costs associated with major card networks, as well as the e-commerce giant’s market power and sway over its partners.

The likes of Visa, Mastercard and American Express now face intense competition from a flood of fintech challengers, from “buy now, pay later” services like Klarna to open banking, a technology that lets start-ups effectively bypass traditional payment rails such as cards.

In an emailed statement to CNBC, Visa said its agreement with Amazon would also see the two collaborate on “new product and technology initiatives to ensure innovative payment experiences for our customers in the future.”

Both companies declined to comment further on the terms of their agreement when asked by CNBC.

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