Have Visa and MasterCard Hit Bottom?
The Fears over Visa (NYSE:V) and MasterCard (NYSE:MA) being subject to proposed bank fee charges has cooled for the moment, with Visa shares gaining back 4% since Dec 17th.
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Recall that Visa (V) and MasterCard (MA) shares fell 16% and 13% less than two weeks ago due to fear that proposed fees banks charge merchants for each transaction using a debit card could slash up to 90% of the revenue those fees generate, with Visa and MasterCard especially vulnerable to the changes.
HOLIDAY SALES HELP VISA AND MASTERCARD
A strong Christmas Eve augmented a great season for retailers. The National Retail Federation predicts spending this holiday season will reach $451.5 billion, up 3.3% over last year.
That would be the biggest increase since 2006, and the largest total since a record $452.8 billion in 2007. The holiday season runs from Nov. 1 through Dec. 31, so a strong week after Christmas could still make this the biggest of all time. Spending numbers through Dec. 24 won't be available until next week and final numbers, through Dec. 31, arrive next month. (source: http://www.ktnv.com)
MasterCard shares closed the day at $224.57, up 2.87% or $6.27 and Visa closed at $70.76, up 2.95% or $2.03.