Small-cap stocks fell hard; BGH, CRI, AND CML lead gainers
Small-cap stocks fell hard on the opening, pressured by a run of weak guidance projections on recession fears from the flood of quarterly earnings reports and by a steep slide in equity markets around the world overnight. Today’s small-cap gainers are BGH GP Holdings (Nasdaq:BGH), Carter's Inc (Nasdaq:CRI) and Compellent Technologies (Nasdaq:CML).
Other Market Watch highlights today included:
• The U.S. dollar continues to soar against the euro, climbing some 1.6% this morning to the highest point in about two years.
• European and Asian equity markets were in a tailspin overnight, with Japan’s Nikkei sinking 6.8%, Singapore tumbling 5.2% to four-year lows and India shares off 4.8%.
• A “V” shape would imply a relatively quick bounce out of the lull, while a “U” shape would imply a more prolonged slump.
• Debates are already underway in the economic analysis community about whether or not the U.S. economy will see a “V” or “U” shaped recovery out of the recession.
Small Cap Gainers:
• BGH GP Holdings up 17% after stating that it made a buyout offer for Buckeye GP’s remaining shares for $17 per share. See (NYSE:BGH).
• Children's apparel market Carter's Inc. raised to "buy" from "hold;" reports solid Q3 results. Shares up over 15%. See (NYSE:CRI).
• Compellent Technologies generates profit in Q3 2008. Shares up 10%. See (NYSE:CML).
• United Airlines' parent company UAL Corp. recorded a $779 million 3Q loss on fuel Tuesday. Shares are up 12% today. See (Nasdaq:UAUA).
• Cascade Bank posted a wider-than expected on government’s nationalization of Fannie and Freddie. See (Nasdaq:CASB).
Small Cap Losers:
• Telecom Argentina skids 19% in the wake of Argentine government’s nationalization of pension plans. See (NYSE:TEO).
• Hancock Holding Co. off 16% after posting lower earnings that missed the Street by 24%. See (Nasdaq:HBHC).
• Foundation Coal Holdings Inc. is down 21% after releasing quarterly earnings. See (NYSE:FCL).
• Kindred Healthcare slips 32% after lowering Q4 and 2008 guidance, reflecting softer hospital operating results. See (NYSE:KND).
