Excerpt from our Wall Street Breakfast, a one-page summary of this morning's key market-moving and stock-moving stories:
MasterCard Wins Admission To Sam's Club [Wall Street Journal]
Summary: In a rarity for the credit card business, discount retailer Sam's Club has decided to accept Mastercard from its customers but not Visa. The cost conscious Sam's until now only accepted Discover Card (owned by Morgan Stanley) or its own cards. The chain is under considerable pricing pressure from two other large retail discounters - Wal-Mart and Costco. The move is significant for Mastercard as it vies for market share with Visa, who next year will follow Mastercard's lead and go public. The credit card market share breakdown is currently as follows: Visa leads the pack with 55% followed by Mastercard with 29%, American Express with 10% and Discover bringing up the rear with 5%.
Related links: Visa IPO Should Pose Challenge to MasterCard • Mastercard's Net Income Increases 82% • Bank of America Doesn't See Any Acquisitions; Both BoA and Wal-Mart to Offer Credit Cards in China • Retail Weakness: So Much for the 'Cheaper Gas Effect' • When Goliath Stumbles: Wal-Mart, Target and Costco
Potentially impacted stocks and ETFs: Mastercard (NYSE:MA), Wal-Mart (NYSE:WMT), Costco (NASDAQ:COST), Morgan Stanley (NYSE:MS), American Express (NYSE:AXP), BJ's Wholesale (NYSE:BJ) • ETFs: PowerShares Dynamic Retail (NYSEARCA:PMR)
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