Small-cap stocks on the rise; MAC, CACH, and VVUS lead gainers
Small-cap stocks started out the day in dramatic fashion, with a jolting opening decline taking place on news that the Senate shot down a bill authorizing $14 billion in bridge loans for the beleaguered U.S. auto industry. However, the opening slide wasn’t as bad as it looked about an hour before the open, as it appears like the White House will try to come to the rescue of automakers. In fact, the Nasdaq actually traded in positive territory briefly about 30 minutes after the open, and small caps jumped nearly 10 handles off the morning low. Some of today’s small-cap gainers are Macerich Co. (NYSE:MAC), Cache (Nasdaq:CACH) and VIVUS (Nasdaq:VVUS).
Other Market Watch highlights today included:
• The Michigan sentiment survey came in better than expected at 59.1, above the forecast of 55.0.
• Much of the investor focus today will be on trying to decipher just what the Senate’s rejection of the automaker bailout will mean to the market.
• The Nasdaq traded in positive territory briefly about 30 min. after the open, and small caps jumped nearly 10 handles off the morning low.
• Bernard Madoff, former Nasdaq chairman, was arrested and charged with running a fraudulent hedge fund that may have racked up $50B in losses.
Small Cap Gainers:
• Macerich Co. is up 14% as the regional shopping center operator completed a $250 million refinancing deal. See (NYSE:MAC).
• Cache opens 6% higher on light volume, and is hovering near a 52-week low of $1.41. The retailer's 52-week high is $14.86 See (Nasdaq:CACH).
• VIVUS initiates Avanafil Phase 3 trials; shares climb over 4% in pre-market. See (Nasdaq:VVUS).
• Wacoal Holdings up 3% in pre-market after posting a dramatic loss on Thursday. See (Nasdaq:WACLY).
Small Cap Losers:
• Chicago Bridge & Iron Co. NV tumbled 17% and has now given back the recent advance tied to plans from President-elect Obama to initiate a massive infrastructure project.
• DryShips cancels its acquisition of four Panamax drybulk carriers. Shares fall 15% in pre-market. See (Nasdaq:DRYS).
• Wunderlich Securities initiates coverage on Warren Resources with a "hold," shares dip 4%. See (Nasdaq:WRES).
• Ciena down another 3.31% in pre-market after seeing a dramatic loss Thursday on a Q4 Loss. See (Nasdaq:CIEN).
