ADS - AmEx other card names slump after JPMorgan boosts card marketing expenses

Credit card names slump after JPMorgan Chase (NYSE:JPM) expects spending on marketing in its card business to remain elevated. American Express (NYSE:AXP) drops 3.6%, Synchrony Financial (SYF -3.1%), Capital One (COF -3.4%), Discover Financial (DFS -3.7%), and Alliance Data Systems (ADS -2.4%). "I think that card marketing number will actually remain elevated," JPM Chief Financial Officer Jeremy Barnum said during the company's Q3 conference call. "And if anything ticks up a little bit sequentially, just based on how the amortization there works." He also said Q3 results from its card business included an ~$180M rewards liability adjustment. "That is not something that we see continuing," Barnum said. "So that should come out of the run rate as we look forward. The promotional expenses were "expected directionally, but is bigger than though," writes Jefferies analyst Ken Usdin in a note. Wolfe Research analyst Bill Carcache points out that the bank's card

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AmEx, other card names slump after JPMorgan boosts card marketing expenses