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Speaker 1: Bloomberg Audio Studios, Podcasts, Radio News.

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Speaker 2: The Stock Movers Report, your roundup of companies making moves

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Speaker 2: in the stock market, harnessing the power of Bloomberg Data.

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Speaker 3: Let's take a look at some stocks on the move today.

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Speaker 3: I'm Amli Grafeo with Tim Stenevic, and we're joined by

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Speaker 3: Bloomberg News, Cross asset reporter danitza's Soakhova and consumer finance

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Speaker 3: reporter Paige Smith. So, Deniza, let's start with you. The

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Speaker 3: big movement in the equity market today is all about

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Speaker 3: these financial stocks.

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Speaker 4: It's so about credit cards, It's so about financial stock,

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Speaker 4: banking firms. They're really the big sliders today. What we're

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Speaker 4: seeing is credit card lenders. We had the news that

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Speaker 4: Prison Triump said their in violation of the wall, and

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Speaker 4: of course that ten percent cap that clearly many stocks

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Speaker 4: are reacting. I want to start with Capital one Financial.

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Speaker 4: The ticker is COF. The stock is down about seven

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Speaker 4: percent now, but it fell as much as eight percent

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Speaker 4: in earlier trading. This is the worst since December twenty

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Speaker 4: twenty five. We it's interesting. We saw a lot of upgrades.

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Speaker 4: We saw RBC Capital, Berkeley's Goldman Sachs, so there was

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Speaker 4: a lot of optimism going into this, and if you

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Speaker 4: look at the price taggets, they're pretty optimistic. The company

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Speaker 4: was also up thirty six percent last year, pretty strong gear.

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Speaker 4: This is of course the largest issue of credit cards.

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Speaker 4: But what we're seeing today is this action is clearly

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Speaker 4: weighing the most on Capital One. It's the biggest of

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Speaker 4: those companies when it comes to losing today.

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Speaker 5: Most definitely, and it's been one that we've been watching

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Speaker 5: very closely as well as as we kind of game

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Speaker 5: out the potential impacts that such a rate cap could have.

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Speaker 1: The Capital One's acquisition of Discover a boon for the

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Speaker 1: company because they're not you know, they're getting that interchange

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Speaker 1: fee if you have a Discover card now, right, So

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Speaker 1: that's a diversification away from relying just on that interest rate.

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Speaker 5: Certainly, it is a diversification. However, you have to think

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Speaker 5: as well that you know a number of the you know,

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Speaker 5: along with the network that Capital One was able to

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Speaker 5: acquire via Discover to get that interchange that you just

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Speaker 5: referenced him, they also acquired a massive portfolio of credit

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Speaker 5: cross for it, so it's sort of like they also

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Speaker 5: did put sort of even a larger.

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Speaker 3: Yes, okay, But of course another credit card name that

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Speaker 3: we're all familiar with is American Express a XP. To

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Speaker 3: need to talk about that move as well, and then

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Speaker 3: we'll get the context from it.

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Speaker 4: Yeah, American Express is down more than four percent. It's

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Speaker 4: interesting all the losses we saw in earlier trading, some

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Speaker 4: of them have definitely been paired and of course that

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Speaker 4: comes as a lot of analysts are questioning whether the

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Speaker 4: approval of that rate cap is actually likely. American Express

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Speaker 4: was up nearly sixty percent last year, incredible year, and

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Speaker 4: going into this it was another company that's saw so

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Speaker 4: many upgrade and price targets we saw Bunk of America, JP, Morgan,

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Speaker 4: IRBs Capital, So a lot of optimism going into this,

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Speaker 4: and as we said, some of the earlier losses are

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Speaker 4: slowly being paired back.

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Speaker 5: So I again, American Express is certainly a huge player

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Speaker 5: in the credit card space. Massive issue where just some

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Speaker 5: interesting characteristics of American Express versus say a Capital. One

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Speaker 5: is that you know, if you look at the mix

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Speaker 5: of consumers that are you know, hold American Express cards

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Speaker 5: in their wallets, you know they tend to be far

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Speaker 5: more affluent and are sort of more of those transactors

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Speaker 5: if you will, that we talked about period or previously

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Speaker 5: tim of the idea that you know, these are folks

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Speaker 5: who are often paying off their balances and fully each

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Speaker 5: month and versus capital. One is known as sort of

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Speaker 5: a you know what's in your wallet kind of a

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Speaker 5: bit more of a catering to sort of the mass affluent,

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Speaker 5: but maybe less sort of ultra ultra premium, which we

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Speaker 5: associate with ami.

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Speaker 1: Well, some of Amex's product are meant to be charge

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Speaker 1: cards and meant to be paid off completely each month,

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Speaker 1: not even meant to carry balance.

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Speaker 5: Right, correct, But if you also think about Amax's portfolio,

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Speaker 5: it's the platinum and the sort of ultropy premium card

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Speaker 5: portfolio as well.

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Speaker 3: The card that makes a sound when you drop it

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Speaker 3: on the tape.

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Speaker 1: All right, Finally, let's talk about what's going on with

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Speaker 1: Visa today. Tanitsa.

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Speaker 4: You're seeing a very different reaction in Visa MasterCard. Both

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Speaker 4: stocks are down today, but much more losses than some

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Speaker 4: of the companies we discuss. Those companies, of course, are

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Speaker 4: not issuing credit cards, but the fees are very important

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Speaker 4: for them. But something that perhaps is becoming more clear

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Speaker 4: during the day is only start saying those stocks are

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Speaker 4: less exposed to rate cap as the impact will be

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Speaker 4: indirect obviously, So what we're seeing is they're both down

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Speaker 4: about one and a half percent, and they both had

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Speaker 4: a pretty good year last year. They were both up

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Speaker 4: twenty percent, so pretty similar reactions after a pretty similar

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Speaker 4: game last year.

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Speaker 1: But Visas did completely different animal because they're the ones

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Speaker 1: who are getting part of the transaction fee for the

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Speaker 1: interchange fee.

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Speaker 5: For the interchange fee, they don't rely on the they

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Speaker 5: do not rely on the interest rate, so that it's

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Speaker 5: sort of a I would say that, you know, kind

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Speaker 5: of similar to why we saw maybe some impacts earlier

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Speaker 5: today on the airlines or retailers, where they're sort of

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Speaker 5: you look at the larger broader credit card ecosystem, and

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Speaker 5: of course Visa and MasterCard are very important to that

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Speaker 5: overall ecosystem. But as you noted, Tanisa, they are certainly

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Speaker 5: not a showing credit cards. They are not a credit

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Speaker 5: card company. Very important to note.

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Speaker 2: That the Stock Movers report from Bloomberg Radio. Check back

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Speaker 2: with us throughout the day for the latest roundup of

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