Capital One's decision to acquire Discover Financial (DFS) is a strategic move that could enhance its market position and product offerings. While acquisitions can lead to short-term financial strain due to the costs involved, they are generally seen as positive for the acquiring company's long-term growth prospects. Investors might view this acquisition as a sign of strength and strategic foresight from Capital One, potentially leading to a positive impact on COF's stock price in the short term.

The acquisition news directly impacts Discover Financial (DFS) as it is the target of the acquisition. Typically, the stock of a company being acquired trades higher due to the premium paid by the acquiring company. This news is likely to boost investor confidence in DFS, at least in the short term, as it reflects a positive valuation and potential for growth under new ownership.