American Express Settles with Treasury Over Cuba Violations and 2 Other Dow Movers to Watch
American Express Co. (NYSE:AXP): Current price $74.53
U.S. officials announced Monday that American Express has reached a resolution with the Treasury Department concerning more than 14,000 tickets that were issued for travel between Cuba and countries outside the country. American Express Travel Related Services Inc. will shell out $5.2 million to settle potential civil liability for apparent federal violations. The Treasury Department discovered that overseas branch offices and subsidiaries of American Express issued some 14,487 tickets for travel to and from Cuba between December 2005 and November 2011, which apparently violated the Cuban Assets Control Regulations. The rules issued 50 years ago disallow financial transactions by banking institutions under United States jurisdiction in which Cuba or its citizens have an interest, Yahoo Finance reports.
United Technologies Corp. (NYSE:UTX): Current price $105.54
According to Investor’s Business Daily, spare parts for airplanes together with elevator sales in China helped buoy United Technologies’s second-quarter earnings, even though, like other industrials, the firm’s revenue missed consensus when it posted results on Tuesday. The manufacturer of Pratt & Whitney jet engines and Otis elevators reported that second-quarter earnings increased by 5 percent to $1.70 per share, while analysts surveyed by Reuters anticipated $1.57. Revenue jumped by 16 percent to $16 billion, missing estimates for $16.4 billion. It was reported that revenue is up due to the 2012 Goodrich Corp. acquisition.
Travelers Companies Inc. (NYSE:TRV): Current price $82.46
Travelers says that it will slash jobs and lower prices of auto insurance, which was interpreted by investors to mean that rates had gone too high, and that competition was increasing. The firm’s shares are down more than 3 percent at midday Tuesday. Analyst Paul Newsome at Sandler O’Neill & Partners said, “The concern is that Travelers was among the leaders pushing price increases, and now they are talking about lowering prices, so that has broader implications for the entire market.” Travelers, which is a Dow Jones Industrial Average component, is the first major insurer to post second-quarter results and is viewed as a bellwether for the industry.
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