NEW YORK (AP) -- American Express Co. said Monday its second-quarter profit tumbled 38 percent, well below Wall Street's forecast, as consumer spending slowed and the number of loans that had to be written off as unpaid increased beyond the lender's expectations.

The company, known for catering to some of America's wealthiest consumers, said the effects of the weakening economy were evident even among its more established members with excellent credit.

For the period ended June 30, the company reported net income of $653 million, or 56 cents per share, compared with $1.06 billion, or 88 cents per share, in the year-ago period.

Analysts, on average, expected earnings of 83 cents per share, according to Thomson Financial.

Shares in American Express plunged $4.50, or 11 percent, to $36.40 in aftermarket trading. Its shares are down about 21 percent for the year.

The results include a $374 million addition to credit reserves, reflecting higher credit losses and the expectation for increased write-offs in the third and fourth quarter.

The company's U.S. card services division reported a profit of just $21 million, down from $580 million a year ago. Revenue net of interest expense in the segment rose a modest 1 percent to $3.6 billion. Results were hurt by a $1.5 billion provision for loan losses, up from $640 million in the 2007 quarter.

CHARLOTTE, N.C. (AP) -- Bank of America Corp. has become the latest in a string of big banks whose second-quarter earnings, while hurting from the impact of the credit crisis, still managed to beat Wall Street expectations.

The nation's second-largest bank by assets said Monday its profit fell 41 percent as losses in its struggling mortgage operations were offset by business in other parts of the company. But it easily beat Wall Street estimates, and its stock rose $1.07, or 3.9 percent, to close at $28.56.

Four of the nation's five biggest banks have now reported better-than-estimated results. JPMorgan Chase & Co. and Wells Fargo & Co. reported smaller-than-expected profit declines, while Citigroup Inc. had a milder-than-expected $2.5 billion loss.

Wachovia Corp., the nation's fourth-largest bank, is expected to report earnings Tuesday. The Charlotte-based bank has said it may post a $2.6 billion to $2.8 billion loss for the quarter.

"Most of our businesses are performing well even with the current state of the economy and the problems with housing," Bank of America Chief Executive Officer Ken Lewis said during a conference call with analysts. "However, as I said, we are not in denial. Credit losses are still going up, but given what we see today, they are manageable."

Bank of America, also based in Charlotte, reported net income of $3.41 billion, or 72 cents per share, on

Macintosh and iPod sales helped boost Apple Inc.'s fiscal third-quarter earnings 31 percent, beating Wall Street's expectations Monday, but investors pummeled the stock after Apple issued soft guidance for the current quarter.

Steve Jobs, Apple's chief executive, did not join the conference call with investors. Earlier in the day, the New York Post cited unnamed financial sources expressing ongoing concerns about Jobs' health. Jobs has survived pancreatic cancer.

During the call, an analyst inquired about the CEO's health.

"He has no plan to leave Apple," Chief Financial Officer Peter Oppenheimer responded. "Steve's health is a private matter."

Cupertino, Calif.-based Apple earned $1.07 billion, or $1.19 per share, 11 cents ahead of Wall Street's expectations, according to a Thomson Financial survey of analysts.

Revenue jumped 38 percent to $7.46 billion, ahead of analysts' average view for $7.37 billion in sales.

Apple said it shipped more Macs in the quarter than ever before -- 2.5 million, up 41 percent from a year ago, with desktop shipments growing faster than laptops. Apple also said iPod sales jumped 12 percent.

The company shipped 717,000 iPhones, a device launched a year ago that melds smart phone and portable media player features. Oppenheimer said he is confident Apple will meet its goal of selling 10