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Cut Up The Cards?

Visa and Mastercard report earnings next week. After disastrous numbers from American Express what should you expect?

American Express shares plummeted over 9 percent on Tuesday, their worst decline since January, a day after the credit card company said credit losses were rising and even its wealthiest customers were slowing their spending.

"American Express reported truly recessionary earnings," wrote Craig Maurer, analyst at Calyon Securities in New York.

Will Visa and Mastercard say more of the same?

I think the most important thing you’ll learn is, how Americans are spending, says Pete Najarian. We have moved into a credit society. Of the three names I like American Express best at current levels. But that’s for a long term trade.

I wouldn’t touch American Express, counters Joe Terranova. I like Visa and Mastercard because they’re not involved in credit. They’re transaction processing companies, only.

Unfortunately Visa and Mastercard look like they're broken technically, adds Quint Tatro so I'd stay away.

















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Trader disclosure: On July 25, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Najarian Owns (AAPL), (TSO), (ICO); Najarian Owns (XLF) Puts, (YHOO) Calls; Najarian Owns (CSCO) Calls; Seymour Owns (AAPL), (BAC), (F), (MER), (MSFT), (TSO); Seygem Asset Management Owns (FXI), (EEM), (NIHD) ;Seygem Asset Management Owns (RSX) Calls; Terranova Owns (YHOO), (XLF), (BNI), (IYT), (SU), (RIMM), (VLO), (SA), (CME), (GOOG), (INTC),( KOL); Terranova Is Long Gold December Futures; Terranova Is Long Crude Oil September $154 Calls; Terranova Is Short Crude Oil September $130 Calls; Terranova Is Short Crude Oil September $130 Puts

Terranova Is Chief Alternatives Strategist Of Phoenix Investment Partners, Ltd.; Phoenix Investment Partners Owns More Than 1% Of (DBV), (RWX), (LNET), (EXR), (SKT), (DLR), (IGE), (ARE), (DBC), (ABD), (OFC), (CLB), (BLV), (CNTY), (FL), (HPC), (PSPT), (ESS), (OIIM), (BIG),(ENG),(PFD),(DRH)

Terranova Is Co-Portfolio Manager Of The Phoenix Diversifier PHOLIO; Phoenix Diversifier PHOLIO Owns (IGE), (DBC), (DBV)

Quint Tatro Is The Principal Of Tatro Capital; Tatro Owns (C), (GS), (JPM), (FSLR); Tatro Capital Owns (CHK), (JNJ), (QQQQ), (SPY), (DUG), (XLF), (GRMN), (ASTI), (JASO), (EEV)

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