Small caps on a timid rise
Despite increasing crude oil prices, small-cap stocks are on a timid rise in afternoon trading after being pummeled during last week’s trading. A better-than-expected Chicago Purchasing survey on manufacturing provided encouragement to bullish investors. At 1:48 p.m. ET, the Russell 2000 (NYSE:IWM) was down 1.79, or 0.26%, at 696.35.
The Chicago Purchasing Manager’s Survey, which tracks economic conditions in Michigan, Indiana and Illinois, clocked in at 49.6, which topped the forecast for a figure of 48. Despite the bullish surprise on the report, it still marked a fifth consecutive month below 50, which indicates contraction in the Midwest business sector.
Crude oil prices gushed to $141.11 a barrel in afternoon trading. The U.S. dollar was up against both the yen and euro.
Small caps on the rise Monday afternoon include Alto Palermo S.A. (Nasdaq:APSA), which is up 23% despite no fresh news. Aceto Corp. (NYSE:ACET), which was up 13.55%, reversing a steep slide from last week amid oversold conditions. Rediff.com India Ltd. (Nasdaq:REDF) is up 16% despite no announcements from the India-based online company.
Small caps attracting sellers this afternoon include Security Bank Corp. (Nasdaq:SBKC) is down 23% despite no announcements from the Macon, Ga.-based firm. MGIC Investment Corp. (NYSE:MTG) is falling some 21% after shareholders on Friday gave the mortgage insurer approval to increase its share base to raise capital. Life Partners Holdings, Inc. (Nasdaq:LPHI) is down 13% despite an announcement that the firm was added to the Russell 3000 Index. Investors on Internet message boards speculated that Life Partner was recommended as a stock to sell in a popular newsletter. LoJack Corp. (Nasdaq:LOJN) was down about 12% this afternoon, reaching a new 52-week low.
Large-cap stocks of note this afternoon include MBIA Inc. (NYSE:MBI), which is reaching a new 52-week low amid credit rating downgrades. MBI shares were off 8.15% in afternoon action. Meanwhile, H&R Block Inc. (NYSE:HRB) was up some 4% after topping analyst estimates for quarterly results.
Market sectors attracting buyers this afternoon include coal energy, oil and gas operations, metal mining, non-cyclical crops, non-apparel textiles and tobacco. Sectors on the downside include insurance, construction raw material, consumer financial services, regional banks, technology retailers and school services.
