Credit Card Spending Lifts American Express

Updated from 4:52 p.m. EDT

American Express (AXP Quote) said earnings rose 11% in the second quarter, thanks to increased spending on its credit cards, higher lending balances and better market conditions.

The nation's third-largest credit card issuer also expects to beat analysts' estimate of $2.26 a share this year, but said profit isn't likely to exceed $2.29, as the company increases spending on business-building initiatives.

For the second quarter, American Express earned $762 million, or 59 cents a share, compared to $683 million, or 51 cents a share, last year. Sales rose to $6.36 billion vs. $5.95 billion last year. ...