The Macy's vs. Martha Stewart Living Omnimedia and J.C. Penney trial continues without any clear winner in sight yet. In a nutshell: 1) Macy's (M) CEO Terry Lundgren became enraged over a plan to place Martha Stewart shops inside of J.C. Penney stores in what his firm calls a breach of contract. 2) Martha Stewart is flabbergasted Lundgren hung up on her. 3) Naturally, JCP CEO Ron Johnson thought he had them both outsmarted. After the dust settles, retail analysts think MSO will suffer the most with its brand tarnished.