Weak economy lowers small-cap stocks; IWOV, STEM, and GERN lead gainers
Small-cap stocks gave back a sizable chunk of Monday’s big rally early on today, pressured by concerns that corporate profits are already sloppy and will be further strained by a weak economy going forward. Today’s small-cap gainers are Interwoven, Inc. (Nasdaq:IWOV), StemCells, Inc. (Nasdaq:STEM) and Geron Corp.(Nasdaq:GERN).
Other Market Watch highlights today included:
• The U.S. dollar was up about 0.6% against the euro, which could weigh on commodity markets as well.
• Crude oil prices tumbled into the stock market opening, clearly rattled by the weak economic data and sloppy profit report from Microsoft.
• Small-cap stocks took a dive on the opening, pulled down by gloomy economic data and also by worrisome profit numbers from Microsoft and Nokia
Small Cap Gainers:
• Autonomy Corporation announces agreement to acquire Interwoven, Inc.; IWOV shares rise 30% in pre-market on the news. See (Nasdaq:IWOV).
• StemCells, Inc. up 11% in pre-market on light volume, extending gains the stock made on Wednesday. See (Nasdaq:STEM).
• Biopharmaceutical company Geron Corp. is up another 7% in pre-market. See (Nasdaq:GERN).
Small Cap Losers:
• Babcock & Brown Air Ltd. tumbled 28% as the firm said they needed to retain cash and announced a dividend of $0.20 a share. See (NYSE:FLY).
• Eclipsys Corporation fell 28% as the health-care software and clinical help firm reported quarterly results. See (Nasdaq:ECLP).
• Teledyne Technologies Inc. fell 18% as the electronic systems designer also took an earnings-tied hit. See (NYSE:TDY).
