Small caps retain tame, sleepy advance
Small-cap stocks remained slightly higher into midday trading as the market was on track to eclipse Wednesday’s tame affair as the new “sleepiest” market day of the season. The market was underpinned by gains for energy stocks, automakers and assorted commodity themes, which helped counter losses in financials, tech stocks, casinos, airlines and home entertainment software shares. At 12:27 p.m. ET, the Russell 2000 (NYSE:IWM) was up 1.58, or 0.33%, at 472.06.
General Motors Corp. (NYSE:GM) has been one of the more dynamic stocks so far today, and remained up nearly 14% at mid-session on news that the automaker’s financing arm has been granted bank holding status. This will allow GMAC LLC to access the Federal Reserve’s discount lending windows, which should help the firm stave off bankruptcy in these difficult times for carmakers. Ford Motor Co. (NYSE:F) was up 9%, getting spillover support from the GM rise.
Commodity stocks were faring well today, with energy shares leading the way. The Energy Select Sector SPDR Fund was up about 1%, with crude oil climbing back above $36 a barrel on news that United Arab Emirates officials said they would trim output. There was a sizable rally in grains markets today, which were bolstered by dry weather in South America, the upside pop in energy and a soft tone in the U.S. dollar.
In tandem with the firm tone in commodities, the Brazilian stock market rose 1.7% today as the country is a major exporter of raw goods. Both mining companies and energy names were solid gainers within the Brazilian Bovespa Index on the Sao Paulo stock exchange.
Individual small caps on the rise today included Integral Systems Inc. (Nasdaq:ISYS), which gapped higher and was up 15% after the firm announced results of an audit for fiscal year 2008. James River Coal Co. (Nasdaq:JRCC) was up 11% in line with gains for commodity companies. Sticking with the energy/commodity theme, Precision Drilling Trust (NYSE:PDS) was up 8%. PDS officials also announced plans for a special year-end distribution of $0.15 per trust unit.
On the downside, RXi Pharmaceuticals Corp. (Nasdaq:RXII) fell nearly 9% to the lowest point since May. Gamco Investors Inc. (NYSE:GBL) was off 6.5%, reversing course from a nice gain Wednesday. Frozen Food Express Industries Inc. (Nasdaq:FFEX) was off 12%, but the move took place on very light volume.
If the market decides to make a move this afternoon, then the key upside points to watch for the Russell will be at 479, 484 and 491. If sellers enter the fray ahead of the weekend, then support is down at 461, then at 452.50.
