Transcripts

Investors Were Leaving Home Without AMEX

SUSIE GHARIB: Disappointing earnings from two Dow components after the closing bell today. A big earnings miss from American Express, sending its shares tumbling almost 12 percent. The financial giant earned $0.56 a share in the second quarter, $0.27 cents below estimates. AmEx blamed the shortfall on a big rise in consumer credit card defaults, a trend it sees continuing at least through the rest of the year. Investors also sold shares of Merck, which fell more than 7 percent. The drug maker reported a second quarter profit of $0.82, $0.03 more than expected, but Merck said it will no longer provide financial forecast as it assesses the impact of another failed study for its popular cholesterol drug Vytorin. That report came earlier today, showing the drug did not help people suffering from heart valve disease. Merck's partner on Vytorin, Schering-Plough (SGP), saw its shares tumble more than 11 percent during the regular session and another 3.5 percent after hours. The slide came even though Schering-Plough reported quarterly earnings after the bell that were $0.03 better than estimates.