Small caps down 1.89% at close, CIT, USAP and ABK lead gainers
Small-cap stocks slipped 1.89% late Friday, as a bleak report on the housing sector, options expiration volatility and ongoing worries about the economy offset a spate of positive earnings in the tech arena. Today’s small-cap gainers are CIT Group (NYSE:CIT), Universal Stainless & Alloy Products (Nasdaq:USAP) and Ambac Financial Group (NYSE:ABK). Other Market Watch highlights today included:
• BMO Capital's Andy Busch to SCI: "There is a serious need to educate the banking sector participants on the changes in the Treasury programs the Fed programs directed at easing the credit crunch."
• Outside of the gold market, commodity stocks were doing well today, with coal, steel, gas utilities, oil exploration, gas storage and agriculture products all up.
• On the downside, anything tied to housing was struggling, including home furnishing stocks and homebuilder shares. Bank stocks and financial shares were also lagging the general market.
• The expiration of options on stocks today likely played a role in some of the market’s struggles as the directional bias into expiration is clearly toward lower prices.
• Crude oil jumped some $4 a barrel today as the market anticipates OPEC will cut production at its meeting next week.
Small Cap Gainers:
• Shares of finance company CIT Group (NYSE:CIT) closed up 62%, after plunging 38% on Thursday due to a wider-than-expected Q3 loss.
• Universal Stainless & Alloy Products (Nasdaq:USAP) jumped some 33% after leaving a double bottom on daily charts Thursday (and ahead of earnings slated for release next week).
• Ambac Financial Group (NYSE:ABK) closed up over 31% on news it is working on a plan to send to the Treasury.
• Gladstone Commercial Corp. (Nasdaq:GOOD) rallied some 24% and is now up about 70% over the last few days.
Small Cap Losers:
• Pilgrims Pride Corp. (NYSE:PPC) closed down 24% as the company is facing deadlines on credit payments.
• Libbey (NYSE:LBY) preliminary Q3 net income declines marginally; issues Q4 revenue outlook, lowers FY08 revenue view. Shares closed down 38.2%.
• Pozen Inc. (Nasdaq:POZN) closed down 28% as the firm was informed by the FDA of an internal review for ulcer trials.
• Evergreen Solar (Nasdaq:ESLR) was off 9.3% after reporting a wider net loss in Q3 and a sharp decline in margins.
