Apple to end credit card program with Goldman Sachs
TheStreet’s J.D. Durkin brings you the biggest news of the day, including how the market fared and why Apple is ending its credit card deal with Goldman Sachs.
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00:00 I'm JD Durkin reporting from the New York Stock Exchange.
00:03 Stocks were mixed to close out the day's session.
00:04 The Dow closed up 16 points.
00:07 The Nasdaq closed down fractionally, while the S&P 500 also closed fractionally lower.
00:12 This comes after third quarter GDP showed a remarkably strong economy, even as inflation
00:17 continues to come down.
00:19 Markets are on pace to close out the month in the green as traders look ahead to the
00:22 final trading day of November.
00:25 Investors are also looking ahead to a key inflation report Thursday, which is heavily
00:28 and closely watched by the Federal Reserve.
00:31 In other news, Apple has informed Goldman Sachs that it plans to end its credit card
00:35 program.
00:36 The iPhone maker said it will wind down the program in 12 to 15 months, despite Goldman
00:41 saying just a year ago that the deal would continue until at least 2029.
00:45 The end of the partnership also includes closing the savings account program, which rolled
00:50 out earlier in 2023.
00:52 Apple launched the Goldman-backed credit card in 2019, promising credit to almost any
00:58 Apple user.
00:59 But Goldman Sachs has lost $3 billion in its consumer banking division since 2020, and
01:05 the company will refocus efforts to its usually large corporation and wealthy clients.
01:10 Goldman already ended a previous credit card partnership with General Motors earlier this
01:14 month.
01:15 For Apple, it's a small blow to its services business, which it relied on to offset slowing
01:20 iPhone sales.
01:21 However, Apple sales are down less than 1% annually, while its services revenue is up
01:27 about 16%.
01:29 Apple said it plans to look for a new banking partner to continue the credit card deal.
01:33 That will do it for your daily briefing.
01:35 For the floor of the New York Stock Exchange, I'm J.D. Durkin with The Street.
01:38 Thanks for watching.
01:39 Have a great day.
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