Small caps end the day higher; PLD, EXEL and MAC lead gainers
Today’s action started out under tremendous stress, with stock futures reeling overnight after Senate leaders rejected the $14 billion auto bailout bill, but the White House made it clear that they would throw a lifeline to drowning automakers, regardless. The news helped push stocks higher and the Russell 2000 (NYSE:IWM) eventually managed to end the day up 3.82%. Some of today’s small-cap gainers are Prologis (NYSE:PLD), Exelixis (Nasdaq:EXEL) and Macerich (NYSE:MAC).
Other Market Watch highlights today included:
• Retail sales this morning came out at minus 1.8%, which was in line with the forecast and perhaps not as bad as some of the “whisper” numbers ahead of the release.
• The PPI report came in at -2.2%, better than the forecast for a dip of 1.8%, which basically shows inflation isn’t an issue right now.
• Bernard Madoff, former Nasdaq chairman, was arrested and charged with running a fraudulent hedge fund that may have racked up $50B in losses.
• On the auto front, the White House appears ready to throw a lifeline to cash-strapped firms via the TARP funds.
• Tech shares were a clear source of strength today, with large-cap tech firms setting the tone for a strong day in the arena.
• Crude oil was back in the tank, losing 3.5%, or $1.70 a barrel.
• Commodities were the poorest performers today, with coal, metals, agriculture products and oil exploration among the worst
Small Cap Gainers:
• Prologis (NYSE:PLD) jumped 43% as the distribution facilities manager basically recouped a similar loss from Thursday’s session. PLD has seen its stock crumble from the $60 range six months ago to just above $2 at the recent low (PLD is now around $8).
• Exelixis Inc. (Nasdaq:EXEL) rose 33% on news that Bristol-Myers Squibb Co. (NYSE:BMY) said would collaborate with the firm to develop cancer drugs.
• Macerich Co. (NYSE:MAC) closed up 21% as the regional shopping center operator completed a $250 million refinancing deal.
Small Cap Losers:
• PerkinElmer Inc. (NYSE:PKI) slumped 18% as the health and safety specialist gapped lower and plunged to fresh 52-week lows.
• Deutsche Bank downgrades many automakers and suppliers, including American Axle & Manufact. Holdings (NYSE:AXL), to "sell." Shares of AXL closed down nearly 15% today as a result.
• Zale Corporation (NYSE:ZLC) closed down 14% after hitting a new 52-week low of $3.03 earlier today, off from a 52-week high of $42.23.
