Coody and Lee both carded sizzling ten-under 62 on the Nicklaus Tournament course at PGA West to take the lead. Over on La Quinta, Scheffler posted a 63 to join nine others in the burgeoning chasing pack, which includes Patrick Cantlay, Robert McIntyre and Jason Day.
"I think the hardest part about these tests where you have to shoot so low is you can only shoot so many under par in a round of golf," Scheffler told ESPN afterwards.
"The easier tests, where the scores are crazy low, if you start falling behind it's a lot harder to keep up, so you have to keep pace out here.
"Felt I could have hit a few more fairways on the back nine, give myself some more opportunities. Even the fairways I was missing, I was missing on the correct side. And it was nice, even though I wasn't hitting it my best on the back, but to keep it in play and give myself some opportunities."
The American Express is played over three different courses - La Quinta, PGA West Stadium course and PGA West Nicklaus Tournament Course - and is known for its low scoring. Sepp Straka won the last edition on 25 under.
Collin Morikawa ended a two-year wait for a PGA Tour title with a one-shot win at the Pebble Beach Pro-Am after holding off a late surge from world number one Scottie Scheffler.
Hideki Matsuyama will take a slender one-stroke lead into the final round of the Phoenix Open on Sunday.
Scottie Scheffler kicked off his year with a four-stroke victory at The American Express in California on Sunday.
Si Woo Kim has a one-stroke lead going into the final round of The American Express on Sunday, but lurking in the chasing pack is the indomitable Scottie Scheffler.
