Merrill Downgrades Three Credit Card Companies To “Sell”
“We are taking a more cautious view on the consumer finance stocks as the serial negative economic news suggests that the risk of a consumer recession is all but certain, in our view.”
– Merrill Lynch analysts, in a report downgrading three credit card companies to sell
The other big story of the day, besides for the Jobs Report, is Merrill’s downgrade of three credit card companies, American Express (AXP), Capital One (COF) and Discover Financial Services (DFS), from “Hold” to “Sell”.
With these stocks already off big, that’s a noteworthy call in my opinion. They write: “We believe complacent optimism is a risky approach. Our gut tells us this is going to get ugly.”