NEW YORK (

TheStreet

) -- Financial stocks were weak across the board Wednesday with few exceptions.

The

Financial Select Sector SPDR

(XLF) - Get Report

, an exchange-traded fund that follows financial stocks, was down 1.63% to $14.51.

Morgan Stanley

(MS) - Get Report

was one of the weakest large-cap financial names, falling 4.26% to$24.95. Deutsche Bank analyst Michael Carrier cut his estimates on both Morgan Stanley and

Goldman Sachs

(GS) - Get Report

citing "weak capital markets trends across the board." Shares of Goldman fell by 2.20% to $148.07, while

JPMorgan Chase

(JPM) - Get Report

,

Bank of America

(BAC) - Get Report

and

Citigroup

(C) - Get Report

, banks that rely heavily on capital markets activity for their earnings, were all down, but by small margins.

Further evidence of the weak capital markets environment came from

Jefferies Group

(JEF) - Get Report

, which posted weak trading results in its third quarter earnings despite strength in investment banking, according to a report from Oppenheimer analyst Chris Kotowski. Investors punished Jefferies stock, sending it down 5.15% to close at $23, erasing nearly all its gains this month.

Discover Financial Services

(DFS) - Get Report

was among the few gainers. Shares of the credit card company closed up 2.13% at $16.30. Discover had seen big gains on the back of strong earnings Monday, but it lost some ground on Tuesday. Wednesday's surge pushed the stock above where it closed Monday.

Another rare winner among financials on Wednesday was

KKR & Co.

(KKR) - Get Report

. The publicly-listed shares of the private equity giant gained 1.58% to $10.26 as it sold $500 million of 10-year bonds. KKR shares are still about 2.4% below their $10.50 open on July 15, the day they moved from an Amsterdam exchange to be listed on the New York Stock Exchange.

--

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.