American Express Company (NYSE:AXP) shares are moving higher on Wednesday amid strong earnings from several major banks. Here’s what you need to know.

What To Know: Major financial institutions, including JP Morgan Chase & Co. (NYSE:JPM), Citigroup, Inc. (NYSE:C) and Wells Fargo & Company (NYSE:WFC), delivered strong earnings Wednesday morning, fueling strength across the financial services sector.

Chase reported revenue of $43.73 billion, beating analyst estimates of $41.70 billion and representing a 10% year-over-year growth. The bank posted earnings per share of $4.81, beating analyst estimates of $4.11. Additionally, Chase reported that debit and credit sales volume increased by 8% year-over-year.

Citi followed suit with strong earnings, reporting revenue of $19.58 billion, beating analyst estimates of $19.48 billion. It also reported adjusted earnings per share of $1.34, beating analyst estimates of $1.22. Wells Fargo reported revenue of $20.37 billion, missing analysts’ estimate of $20.58 billion and it reported earnings per share of $1.43, beating analyst estimates of $1.34.

American Express may be trading higher following these positive earnings, as it indicates resilience in the financial sector and robust consumer spending, which benefits companies like American Express. This is evident in the improved financial and operational metrics from Citi and Chase, such as the increase in debit and credit card sales volume.

Better-than-expected bank earnings may also reflect broader economic strength.

In Chase’s earnings report, Jamie Dimon, Chairman and CEO, said, "The U.S. economy has been resilient. Unemployment remains relatively low, and consumer spending stayed healthy, including during the holiday season. Businesses are more optimistic about the economy, and they are encouraged by expectations for a more pro-growth agenda and improved collaboration between government and business."

See Also: What’s Going On With Amplify Energy Stock Today?

AXP Price Action: At the time of writing, American Express stock is trading 3.66% higher at $311.35, according to data from Benzinga Pro.

Image: via Shutterstock