Stocks remain high into mid-session; RXII, WCG, and GASS lea
Small-cap stocks remained higher into mid-session, bolstered by a big acquisition on the pharma front, which sparks hope that small caps are undervalued overall. If there are deals being done for large caps, then there should be attractive acquisitions for a bevy of smaller companies. In addition, a surprisingly strong showing on existing home sales also provided a lift to the market. Some of today's small-cap gainers were RXi Pharmaceuticals Corp. (Nasdaq:RXII), WellCare Health Plans Inc. (NYSE:WCG) and StealthGas (Nasdaq:GASS).
Other Market Watch highlights today included:
• Looking at sector activity today, metals and mining stocks were the strongest performing group in the S&P.
• Energy prices and stock market direction have been trading hand-in-hand of late, so the rise in equities clearly supported crude oil.
• Energy stocks were on a roll today, up 2.9%, mirroring a 3% climb in cash crude oil prices.
• Small caps remained higher, bolstered by a big acquisition on the pharma front, which sparks hope that small caps are undervalued overall.
Small Cap Gainers:
• RXi Pharmaceuticals Corp. jumped 31% on news that the firm will enter a research collaboration with the University of Massachusetts Medical School. See (Nasdaq:RXII).
• WellCare Health Plans Inc. rallied about 19% as the firm updated its 2008 forecast and said it would pay in fall outstanding term loan balances. See (NYSE:WCG).
• StealthGas climbs 15% in pre-market after announcing a rise in Q3 profit; declaring dividend. See (Nasdaq:GASS).
• Homebuilder stocks were going well today, with the ISE Homebuilders Index up 4.6%, with small-cap builder Lennar Corp. rising 11%. See (NYSE:LEN).
Small Cap Losers:
• Wyeth withdraws from Crucell takeover talks; Crucell tumbles 15% in pre-market. See (Nasdaq:CRXL).
• AMN Healthcare Services Inc. was down 13% sinking to 52-week lows. See (NYSE:AHS).
