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Consumer Vanished In October: Trade It With This Stock



October 31, 2013 – Comments (0) | RELATED TICKERS: V , MA

Today, Visa Inc (NYSE:V) reported earnings. The big news with Visa was that the consumer vanished in October they said. Literally, vanished. The stock is trading at $198.20, -5.62 (-2.76%). This news makes many wonder if the retail sector may be in for a very tough holiday season.

This very negative news shows the consumer has put away their wallet in the short term because of the government shut down and current economic situation. The consumer is resilient BUT can only be hammered so many times before they retreat for a longer stretch. With the government risking default and shut down again in January/February, the consumer man stay hidden.

The trade here can be had on Mastercard Inc (NYSE:MA) on the short side. This company reported earnings this morning but did not mention how sales were going in October. Considering Mastercard and Visa are almost identical, it can be assumed that things are not great for Mastercard. The stock is hovering around the flat line but will likely see weakness in the coming days and weeks because of this news. Most investors have not made the connection just yet.

Gareth Soloway

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