Russell tumbles at close; OREX, RTLX and TARG lead gainers
The Russell 2000 (NYSE:IWM) closed down nearly 8% today, sinking to the lowest point since May 2003. Some of today’s small-cap gainers are Orexigen Therapeutics (Nasdaq:OREX), Retalix Limited (Nasdaq:RTLX) and Targanta Therapeutics (Nasdaq:TARG).
Other Market Watch highlights today included:
• The consumer price index headline figure came in at minus 1%, which was slightly below the consensus forecast for a dip of 0.8%.
• The MBA Mortgage Application Index slipped 6.2% and is hovering near 8-year lows as the housing market continues to struggle.
• Single-family housing starts tumbled to the lowest level in 27 years.
• Automobile manufacturers, REITS, health-care facilities and hot commodities like aluminum and coal were all down.
• The yield on benchmark 10-year notes collapsed some 4.5% today and the yield on five-year notes hit a five-year low.
• The chart picture for small caps is decidedly one-dimensional, with all the power and the dynamic long-term patterns pointing to further decay.
Small Cap Gainers:
• Orexigen Therapeutics Inc. (Nasdaq:OREX) closed up 20% without any apparent fresh news behind the move.
• Retalix Limited (Nasdaq:RTLX) closed up 20.5% on light volume this morning, following earnings results earlier this week that showed a decline in Q3 profit, prompting small cap to cut guidance.
• Targanta Therapeutics Corp. (Nasdaq:TARG) was a featured small-cap in rally mode Monday and the move was extended today –- the company closed up 10.7%.
Small Cap Losers:
• Lincoln National Corp. (NYSE:LNC) tumbled 39% as the insurer said it anticipated a charge of $300 million or more from declining equity markets.
• DryShips Inc. (Nasdaq:DRYS) slumped 34% as the commodities marine transportation firm set 52-week lows.
• Genesco Inc. (NYSE:GCO) fell 36% as the shoe and hat retailer saw shares sink to six-year lows after the firm lowered guidance Tuesday.
