Capital One Indirectly Benefits from HSBC Merchant Renewals

HSBC (NYSE:HBC) says it has extended its private label credit card agreement with Big Lots (NYSE:BIG), Darvin Furniture, Saks (NYSE:SKS) and Berkshire Hathaway’s (NYSE:BRKA) Jordan’s Furniture. The renewals are a good sign for Capital One (NYSE:COF), which is purchasing the bank’s U.S. card business and could risk of losing some of its partners.

Big Lots and HSBC will continue a private label credit card relationship that was established in March 2005. Darvin Furniture of Orland Park, Illinois and HSBC have been private label partners for 30 years. Saks Incorporated forged its relationship with HSBC in 2003. Jordans Furniture has been an HSBC private label partner since 1991.

Here’s how the other major credit card players are reacting to the news:

Mastercard Incorporated (NYSE:MA): MA shares recently traded at $377.01, up $3.23, or 0.86%. They have traded in a 52-week range of $219.33 to $384.99. Volume today was 285,515 shares versus a 3-month average volume of 1,077,260 shares. The company’s trailing P/E is 21.18, while trailing earnings are $17.80 per share.

Visa, Inc. (NYSE:V): V shares recently traded at $102.94, up $2.22, or 2.2%. They have traded in a 52-week range of $67.51 to $103.45. Volume today was 1,268,815 shares versus a 3-month average volume of 4,307,450 shares. The company’s trailing P/E is 19.36, while trailing earnings are $5.32 per share.

Discover Financial Services (NYSE:DFS): DFS shares recently traded at $23.98, up $0.03, or 0.13%. They have traded in a 52-week range of $18.13 to $27.92. Volume today was 1,430,706 shares versus a 3-month average volume of 6,423,390 shares. The company’s trailing P/E is 5.91, while trailing earnings are $4.06 per share.

American Express Company (NYSE:AXP): AXP shares recently traded at $47.28, up $0.31, or 0.66%. They have traded in a 52-week range of $41.30 to $53.80. Volume today was 1,454,318 shares versus a 3-month average volume of 7,881,240 shares. The company’s trailing P/E is 11.85, while trailing earnings are $3.99 per share.

To contact the reporter on this story: Gina Smith at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com