Russell kicks off higher Wednesday morning; RGS, WRLD, and UCBH lead gainers
Small-cap stocks jumped higher this morning, buoyed by a rush back into bank and financial stocks amid hope that the government will set up a “bad bank” facility to mop up losing bank investments, which would help clear bank balance sheets. In addition, there is a sense that the Obama Administration is moving back toward the original purpose of the TARP of absorbing bad debt paper, a concept that has repeatedly sparked brief rallies in equities. Some of today’s small-cap gainers were Regis Corp. (NYSE:RGS), World Acceptance Corp. (Nasdaq:WRLD) and UCBH Holdings (Nasdaq:UCBH).
Other Market Watch highlights today included:
• The weekly MBA Mortgage Application Index tumbled 38.8% to 732.1% and is now at the lowest point since the week ended Nov. 21.
• There is a chance that some of the enthusiasm on the financial and banking front has also been stoked by optimism ahead of this afternoon’s FOMC statement.
• The KBW Banking Index was up nearly 10%. Small-cap stocks jumped higher this morning, buoyed by a rush back into bank and financial stocks.
Small Cap Gainers:
• Regis Corp. charged 24% as the beauty salon and hair restoration company reported earnings. See (NYSE:RGS).
• Small-loan consumer finance company World Acceptance Corp. gapped higher and rallied 20% on solid earnings news. See (Nasdaq:WRLD).
• UCBH Holdings is up 14% in pre-market on very light volume. See (Nasdaq:UCBH).
• Huntington Bancshares and Ronald A. Katz Technology Licensing settle patent lawsuit and enter into license agreement; HBAN rises 12% in pre-market. See (Nasdaq:HBAN).
Small Cap Losers:
• Century Aluminum Co. tumbled 30% as the firm announced plans for a common stock offering. See (Nasdaq:CENX).
• Plantronics Inc. was down 9% as the headset maker took an earnings-related hit. See (NYSE:PLT).
• Amylin Pharmaceuticals reports 2008 financial results; shares fall 6% in pre-market. See (Nasdaq:AMLN).
