Better Credit Card Data Shows Consumer Credit Is Bottoming (AXP, DFS, COF, BAC, JPM)

Credit card isurers are surging today as data on delinquencies and charge-offs improved in June over May, suggesting that consumer credit is bottoming. American Express (NYSE: AXP) is up 11%, Capital One (NYSE: COF) is up 12% Discover Financial (NYSE: DFS) is up 7%, Bank of America (NYSE: BAC) is up 5%, and JPMorgan Chase & Co. (NYSE: JPM) is up 5.4%

Data from credit card leader American Express showed that on a managed basis net write-offs were 9.9% in June, down from 10% in May. 30-day delinquencies on a managed basis, which could lead to future write-offs, fell to 4.4% in June from 4.7% in May.

Capital One's net write-offs rose to 9.73% in June versus 9.41% in May, but 30-day delinquencies fell to 4.77% in June from 4.9% in May.

Discover Financial's net write-offs fell to 8.75% to 8.91% and 30-day delinquencies fell to 5.27% from 5.32%, the second straight monthly decline.

Analysts at Jefferies were compelled to upgrade both American Express (NYSE: AXP) and Capital One (NYSE: COF) to 'Buy' on the news.

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