American Express shares fall as payment rates dip

American Express shares fell $1.18, or 2.4 percent, to $48.68. Shares have traded between $39.50 and $65.89 during the past year.

Delinquencies at New York-based American Express increased 0.04 percent in April compared with the previous month, Calyon Securities Inc. analyst Craig Maurer wrote in a research note. Delinquencies increased 0.67 percent compared with the year ago, Maurer said.

Delinquencies, which are a strong indicator of future performance, typically fall in April, Maurer wrote in a research note.

Like many other lenders, American Express is dealing with rising delinquencies and defaults on payments. As fewer customers pay on time, financial services firms like American Express are forced to increase reserves to cover charge-offs -loans written off as not being repaid. The rising reserves eat into earnings.

Maurer reiterated a "Buy" rating on American Express, saying it has long-term value. But, he warned the stock's "downside rise remains pervasive for at least the next six months."