Story updated with closing prices.

NEW YORK ( TheStreet) -- Financial stocks made a comeback Tuesday, even after reports that consumer confidence sunk to its lowest levels since February.

The Financial Select Sector SPDR ( JPM) closed up by 3 cents at $14.48.

The winning financial stocks for Tuesday included Allstate ( ALL), which ended the day up 76 cents at $32.16. First Horizon National Corp. ( FHN - Get Report) closed up 20 cents to $11.17

M&T Bank ( MTB - Get Report) was the biggest loser of the day. Shares in the bank continued to get slammed after reports surfaced over the weekend that merger discussions with Banco Santander ( STD) had collapsed. The bank's stock ended the day down $1.74, at $82.50.

American International Group's ( JPM - Get Report) stock fell 47 cents to $36.66 on news that the insurer is working out an arrangement to remove itself from government ownership. However, half way through the day the stock picked up and ended the day off up 19 cents at $37.32.

JP Morgan's ( JPM - Get Report) stock slipped 13 cents to $38.95. The bank has reportedly notified federal regulators that it wants to recoup the cash for the assets Washington Mutual, according to CNBC.

--Written by Maria Woehr in New York.

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