Russell closes up nearly 7%; GNW, PEI and TRA lead gainers
The Russell 2000 (NYSE:IWM) closed up 6.7% today, thanks to the Fed’s decision to cut the key interest rate to the lowest level on record. Some of today’s small-cap gainers are Genworth Financial (NYSE:GNW), The Pennsylvania Real Estate Trust (NYSE:PEI) and Terra Industries (NYSE:TRA).
Other Market Watch highlights today included:
• The housing starts report came out at an annualized rate of 625,000 units, which was well below the forecast of 730,000.
• Housing starts tumbled 18.9%, the largest drop since March 1984 and the lowest unit rate on record.
• The CPI came in at -1.7%, which was even lower than the -1.2% projection, but not a surprise given steep declines in energy costs.
• Homebuilder shares retain a potential bottom on long-term charts and were back on an upside tilt today after sinking on Monday.
• Another clear source of strength today came from insurance stocks, with the S&P Insurance Index climbing throughout the day.
• The Fed cut its target for the key interest rate to the lowest level on record and promised to use "all available tools" to combat the severe financial crisis and possible prolonged recession.
Small Cap Gainers:
• Small-cap firm Genworth Financial Inc. soared some 25%, climbing to the highest point since early November. See (NYSE:GNW).
• The Pennsylvania Real Estate Investment Trust jumped 22% on news that the company completed a financing deal. See (NYSE:PEI).
• Terra Industries Inc. rallied 19% as the fertilizer company also mounted a big bounce off Monday’s pullback. See (NYSE:TRA).
Small Cap Losers:
• Satyam Computer Services Ltd. tumbled 55% on unusually heavy volume as the Indian software firm said it will invest $1.6 billion on two infrastructure firms. See (NYSE:SAY).
• Tech company Stec lowered Q4 revenue view, shares fell 22%. See (Nasdaq:STEC).
• S&P puts Atlas Pipeline rating on CreditWatch; shares toppled some 13%. See (NYSE:AHD).
