This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
See Cramer's multi-million dollar portfolio for FREE and get his new book Get Rich Carefully! Learn More

Visa, BlackRock: Financial Winners

NEW YORK (TheStreet) -- Financial stocks were higher nearly across the board Wednesday, outpacing the broader market. The Financial Sector SPDR (XLF), a popular exchange traded fund that tracks financials stocks, rose 0.80% to close at $16.45.

Visa (V) was one of the big winners, as the Federal Reserve missed an April 21 deadline for issuing final rules placing restrictions on debit interchange fees that banks and debit card companies charge to merchants. Shares of Visa rose 2.81% to $74.23 on more than double their average volume. MasterCard (MA) shares also rose on twice their average volumes, though the gains were a more modest 0.77% to $253.66.

A report Wednesday from Keefe, Bruyette and Woods argued the delay was "a positive for Visa and MasterCard as a delay could be perceived as the Fed considering some alternate scenarios that may be less onerous than the initial proposals."

Shares of Discover Financial Services (DFS) and American Express (AXP)were also higher, with Discover up 2% to $24.98 on better-than-average volumes and Amex rising 0.57% to $45.91 on light volumes. Sandler O'Neill analyst Mike Taiano says these companies will not be greatly harmed by the interchange fee rules and Discover may even see a benefit. He attributes Discover's gains on Wednesday to ongoing investor excitement about the company's ability to generate capital strength. Discover shares have risen 12% over the past month while the S&P 500 has posted a slight decline.

BlackRock (BLK) was another big gainer--its shares rising 6.62% on more than six times their average volumes on news the stock will join the S&P 500 after Friday's close.

Derek Pilecki, portfolio manager with Gator Capital Management, has been short BlackRock, a position that had been working until he was caught off guard by the S&P/BlackRock announcement.

"It's a technical thing that's hard to anticipate, but I'm going to hand in there," Pilecki says.

Central to his bearish thesis on BlackRock is that the money manager's exchange-traded fund business will suffer due to competition from Vanguard.

-- Written by Dan Freed in New York.

Stock quotes in this article: V, MA, DFS, AXP, BLK 
Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
DOW 16,410.75 +2.21 0.01%
S&P 500 1,866.95 +2.10 0.11%
NASDAQ 4,094.1690 -1.3470 -0.03%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs