Small caps soar 7.6% at close; DIN, SYUT and QELP lead gainers
Even though the market is still hammered for the year, today’s rally was a significant rise for the stock market, small caps included. The Russell 2000 (NYSE:IWM) rallied 7.6% for the second-largest one-day gain of the year. Today’s small-cap gainers are Dineequity (Nasdaq:DIN), Synutra International (Nasdaq:SYUT) and Quest Energy Partners (Nasdaq:QELP).
Other Market Watch highlights today included:
• The Conference Board reported today that consumer confidence plunged to 41-year lows. With two-thirds of the U.S. economy driven by consumer spending, a retrenched mood into peak holiday season purchasing activity is a troubling sign.
• Some of the renewed faith in the market on Tuesday could very well be tied to optimism ahead of the Federal Reserve’s announcement on interest rates Wednesday afternoon.
• Inter-bank rates slipped again overnight for the twelfth straight trading day, which many hope is a sign that things are getting better in the ongoing credit crisis.
• The only areas of pronounced weakness today were household appliances, building products, health care facilities and homebuilders.
• Energy stocks were a clear source of strength for the stock market today, with the Energy Select Sector SPDR Fund jumping some 9%.
• Despite the rise in energy shares, crude oil prices were skittish to join the buying party and closed down about $0.50 a barrel.
Small Cap Gainers:
• Dineequity Inc. soared some 81% and has now charged some 192% off the lows from Monday. See (NYSE:DIN).
• Synutra International, Inc. closed up 51% on light volume. See (Nasdaq:SYUT).
• Quest Energy Partners declares cash distribution for Q3 2008. Stock price closed up 27.5%. See (Nasdaq:QELP).
• Shares of ARM Holdings closed up 29% after the tech company reported mixed Q3 results this morning. See (Nasdaq:ARMH).
Small Cap Losers:
• Cynosure slid 22% after Q3 EPS miss the Street on greater expenses and lower gross margins. See (Nasdaq:CYNO).
• Convergys swings to loss in Q3, issues Q4 outlook below the Street. Shares dive 28% at closing. See (NYSE:CVG).
• Meritage Homes skidded 31% at closing after reporting a wider loss in Q3 on the dismal housing market. See (NYSE:MTH).
• AmeriCredit Corp. closed down 17% as the company cautioned on debt load issues while reporting earnings. See (NYSE:ACF).
