Visa, Mastercard Head Into Earnings With Spending Holding Firm

Visa Inc. (NYSE:V) and Mastercard Incorporated (NYSE:MA) are expected to report earnings results on January 29.

JP Morgan analyst Tien-tsin Huang says that the spending data indicate only a slight slowdown in the fourth quarter, and given the tough year-over-year comparison, this suggests that the domestic consumer remains healthy.

Last week, President Donald Trump posted on social media encouraging support for the Credit Card Competition Act (CCCA). The analyst writes that headlines around CCCA have fueled cautious sentiment, but any impact is likely manageable over the long term.

The analyst argues that CCCA is unlikely to gain traction because it offers no clear material benefit to consumers or merchants relative to the operational burden.

Even if implemented, the ...