Russell opens higher; SVNT, FSP, and RDEN lead gainers
Small-cap stocks pushed higher in early trading, lifted by news that General Motors Corp. (NYSE:GM) will receive an additional $6 billion in rescue funds, including a $5-billion stake in the financing arm, GMAC. In other developments, a better-than-feared reading on Midwest manufacturing helped soothe the pain from a weak consumer confidence figure. Today's small-cap percentage gainers are Savient Pharma (Nasdaq:SVNT), Franklin Street Properties Corp. (NYSE:FSP), and Elizabeth Arden Inc. (Nasdaq:RDEN).
Other Market Watch highlights included:
• Even though crude oil prices were lower, commodities in general were holding together fairly well, underpinned by a drop in the U.S. dollar against the euro.
• The Consumer Confidence report came in at 38.0, which was below the forecast of 45.2. Today’s reading marked a record low for consumer confidence as unemployment is on the rise.
• The Chicago Purchasing Manager’s Survey came in at 34.1, which was better than the forecast and which marked the first rise since August.
• The Case-Shiller Home Price Index came in at minus 18% in October vs. year-ago levels, which reflects a record annual price decline. However, traders noted the data is dated.
Small Cap Gainers:
• Savient Pharma is up 11% to $5.47 after news late Mon. that the FDA is giving fast review to its gout drug. See (Nasdaq:SVNT)
• Franklin Street Properties Corp is up 9.2% after news late Monday it will be added to the S&P SmallCap 600 after Wednesday's close. See (NYSE:FSP)
• Beauty products company Elizabeth Arden Inc. is up 9.1% to $11.71 after Wedbush Morgan upgrade to "Buy" from "Hold," with a $15 price target. See (Nasdaq:RDEN)
• AmTrust Financial Services, Inc. is up 8.8% in pre-market, to $12.19. See (Nasdaq:AFSI)
Small Cap Losers:
• Biopharma company Maxygen, Inc., which focuses on developing improved versions of protein drugs, is down 10.4% to $8.11. See (Nasdaq:MAXY)
• The Finish Line, Inc. is one of the biggest small-cap losers in pre-market trading this morning, down 6.7% to $5.00. See (Nasdaq:FINL)
• Auto supplier Gentex is down 4% in pre-market trading to $7.99 a share. See (Nasdaq:GNTX)
