This Day On The Street
Continue to site
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

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 - Get Report) 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 - Get Report) 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 - Get Report) and American Express (AXP - Get Report)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 - Get Report) 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.
Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
BLK $317.02 -0.49%
AXP $76.91 -0.35%
DFS $55.64 -0.14%
MA $95.22 -0.68%
V $73.58 -0.43%


Chart of I:DJI
DOW 17,044.30 -6.45 -0.04%
S&P 500 2,013.43 +15.91 0.80%
NASDAQ 4,821.3610 +10.5730 0.22%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs