Financial Sector Inches Up To Add To Early Weekly Gains

US financial stocks were nudged higher on Friday with the help of bank shares, exchange operators and impressive credit card earnings. Both the Financial Select Sector SPDR Fund and the SPDR KBW Bank Fund swung back and forth between negative and positive territory on Friday. While the Financial Select Sector SPDR Fund moved to close up 0.3% for a weekly gain of 2.6%, the SPDR KBW Bank Fund closed up 0.1% to gain 5.4% by the end of the week.

Shares of American Express (NYSE: AXP) advanced 5% earlier in the day, after the company announced after Thursday's closing bell that its first-quarter profits more than doubled from the year-ago period. AXP closed up 2.7% for the day, and the weekly gain was around 6.5%.

According to Ladenburg Thalmann, although revenue growth continues to be weak due to a tough economic environment, “the rebound in card spending and further evidence of declining loan losses are encouraging signs of improving fundamental trends."

Shares of Capital One Financial Corp (NYSE: COF) also added 2.6% after the company said it swung to quarterly profits.

Exchange operators were also in the green on Friday, with NYSE Euronext Inc and Nasdaq OMX Group Inc shares moving up nearly 2%. IntercontinentalExchange Inc (NYSE: ICE) shares gained 1.2% during the day to finish the week up 10%. Although shares of CME Group Inc (NYSE: CME) fell 1% for the day, they have climbed 7.3% for the week.

Other stocks that had the positive move include Principal Financial Group Inc (NYSE: PFG), which rallied 4.8% during the day, Huntington Bancshares Inc (NASDAQ: HBAN) whose shares advanced 4.1% for the day and E-Trade Financial Corp (NASDAQ: TEFC) closed up 3.8%.

Shares that fell that day on earnings announcement but ended the weak positively are Travelers Cos (NYSE: TRV) and Citizens Republic Bancorp Inc (NASDAQ: CRBC).

Some shares that ended the week in the red are Federated Investors Inc (NYSE: FII), Goldman Sachs Group Inc (NYSE: GS) and Bank of New York Mellon Corp (NYSE: BK). While FII went down because of a downgrade by Sandler O'Neill to “hold” from “buy,” GS was hurt by the SEC filing a criminal lawsuit against the company.

Read more from Benzinga's Markets.