Russell closes higher; FMFC, MI and GSS lead gainers
The Russell 2000 (NYSE:IWM) closed slightly higher today on news that a deal was hammered out on the stimulus bill. Some of today’s small-cap gainers were First M&F Corp. (Nasdaq:FMFC), Marshall & Ilsley (NYSE:MI) and Golden Star Resources (AMEX:GSS).
Other Market Watch highlights today included:
• The MBA Mortgage Application Index fell 24.5% today despite a mild dip on fixed rate mortgages, which suggests that the housing market is still struggling mightily.
• Economist Steve Wood: "The housing market is still mired in a deep recession with no indication that a bottom has yet been reached."
• The monthly trade report was released, showed the smallest trade gap in nearly six years, but that gap was still a tad bigger than expected.
• Bank shares were a bright spot for the market today, with the KBW Banking Index rising about 5%.
• Gold stocks were a source of strength today, likely bolstered by investors looking for a hard goods safe haven away from struggling equities.
• Crude oil prices tumbled 4.2%, losing $1.61 to $35.94 a barrel, pulled down by a surprisingly large build on weekly inventories.
• Copper prices in U.S. trading tumbled some 5% amid news that China’s January imports of copper fell 19%.
Small Cap Gainers:
• Small-cap banks dominated the biggest percentage gainers today, with firms like First M&F Corp. climbing back from a big slide Tuesday. FMFC gained about 21% on the session. See (Nasdaq:FMFC).
• Small-cap bank Marshall & Ilsley Corp. rose 12% today, gaining back some of the 26% spiral from Tuesday. See (NYSE:MI).
• Several small-cap gold stocks were a hot item today, including Golden Star Resources Ltd., which jumped some 14%. See (AMEX:GSS).
Small Cap Losers:
• Great Plains Energy Inc. tumbled 21% after the firm reported results after the close Tuesday. See (NYSE:GXP).
• Waste Services Inc. fell 9% on brisk volume, sinking to fresh 52-week lows. See (Nasdaq:WSII).
• Live Nation Inc. fell another 17% today after news broke earlier this week that the small would be merging with Ticketmaster. See (NYSE:LYV).
