Bowne & Co, Albany Molecular Research and Dolan Media lead small-cap percentage losers
Also included among the results: Multi Color Corp. (Nasdaq:LABL), LSI Industries Inc. (Nasdaq:LYTS), Mercury Computer Systems Inc. (Nasdaq:MRCY), Liquidity Services Inc. (Nasdaq:LQDT), Dorman Products Inc. (Nasdaq:DORM) and Molina Healthcare Inc. (Nasdaq:MOH).
American Physicians Capital, Bowne & Co. and Alamo Group top small-cap percentage gainers
Russell extends decline into midday; MAPP, PALM, and CBAN lead gainers
Other Market Watch highlights today included:
• Restaurants were a hot item on Friday, but were a little cool this morning, perhaps tied to profit-taking and also from the ongoing worries about the economy.
• Credit Suisse analysts lowered its rating on GM to “underperform” and cut their price target to $1.
• Automakers were finding out that the glow from Friday’s $13.4 billion dollar White House bailout had a short shelf-life among investors.
• Crude oil was off more than 3%, slipping back below $41 a barrel as Chinese imports tumbled to the lowest level of the year in November.
Small Cap Gainers:
• MAP Pharmaceuticals up 30% after announcing a worldwide collaboration with AstraZeneca to develop and commercialize a new drug. See (Nasdaq:MAPP).
• Palm gets $100 million investement, shares rally 20%. See (Nasdaq:PALM).
• Colony Bankcorp up 28% after declaring a fourth quarter dividend on Friday. See (Nasdaq:CBAN).
• Benihana awarded Xanadu liquor permit by state; shares pop 12%. See (Nasdaq:BNHNA).
Small Gainers:
• Maguire Properties down 22% after suspending dividend on Friday. See (NYSE:MPG).
• Among small-cap movers, eatery chain Lubys Inc. is down 17%. See (NYSE:LUB).
• Browne & Co. Inc. is down 15% as the marketing communications firm gave back a huge chunk of Friday’s rally. See (NYSE:BNE).
• Oxford Industries Inc. is down 14% as the apparel maker turned south along with other apparel and retail names after a strong performance last week. See (NYSE:OXM).
Brown Shoe Company, Bowne & Co and Worthington Industries lead small-cap percentage losers
Also included among the results: Volt Information Sciences Inc. (Nasdaq:VOL), Jones Apparel Group Inc. (Nasdaq:JNY), Goodrich Petroleum Corp. (Nasdaq:GDP), Rex Stores Corp. (Nasdaq:RSC), CPI International Inc. (Nasdaq:CPII) and Outdoor Channel Holdings Inc. (Nasdaq:OUTD).
The grinch hits retailer stocks, paces midday decline
Small-cap stocks extended the morning decline into midday trading, with retailer stocks leading the way down. Additional pressure came from sinking energy stocks, a weak tone in some commodity names, tumbling automakers and modest declines in financial shares as well. At 12:31 p.m. ET, the Russell 2000 (NYSE:IWM) was down 15.82, or 3.25%, at 470.44.
Last weekend was supposed to serve up one final heroic shopping push into the Christmas holiday, but awful weather in several key markets around the country didn’t exactly help save the day. Analysts at DA Davidson today said that this shopping season could be the poorest in some 25 years, since the recession back in the early 1980s. The S&P Retail Index was off some 4% at mid-session.
Crude oil prices resumed the downward path after showing some upside potential earlier this morning. Crude oil was off more than 3%, slipping back below $41 a barrel as Chinese imports tumbled to the lowest level of the year in November. Energy stocks were off about 2.5%.
Automakers were finding out that the glow from Friday’s $13.4 billion dollar White House bailout had a short shelf-life among investors. General Motors Corp. (NYSE:GM) was down 16% at midday, while Ford Motor Co. (NYSE:F) was off 11%. Credit Suisse analysts lowered its rating on GM to “underperform” and cut their price target to $1, saying that GM’s credit could be entirely wiped out if it complies with restructuring mandates in the bailout fine print.
Restaurants were a hot item on Friday, but were a little cool this morning, perhaps tied to profit-taking and also from the ongoing worries about the economy. Among small-cap movers, eatery chain Lubys Inc. (NYSE:LUB) was down 17%. Other small caps on the decline included Jones Apparel Group Inc. (NYSE:JNY) off 15% and Browne & Co. Inc. (NYSE:BNE), down 15% as the marketing communications firm gave back a huge chunk of Friday’s rally. Oxford Industries Inc. (NYSE:OXM) was down 14% as the apparel maker turned south along with other apparel and retail names after a strong performance last week. On the upside, MAP Pharmaceuticals Inc. (Nadsaq:MAPP) remains a popular small-cap share on the rise after . . .
Russell closes down 2.18%; OPTR, CCO and HPT lead gainers
The Russell 2000 (NYSE:IWM) dove again Tuesday, closing down over 2% and rejecting a brief afternoon bounce into positive territory. Today’s small-cap gainers are Optimer Pharmaceuticals (Nasdaq:OPTR), Clear Channel Outdoor Holdings (NYSE:CCO) and Hospitality Properties Trust (NYSE:HPT).
Other Market Watch highlights today included:
• For the year, small caps are off 37%, while the Dow is down 34% and the S&P 500 is down 39%.
• Energy, insurance, retail, technology and financial stocks were major sources of weakness today.
• Homebuilders, drug stocks, agriculture products and home entertainment software companies lagged the overall market downdraft.
• Russia is the second-largest oil producer in the world and in addition to the commodity woes right now, had to raise interest rates today to fight off capital outflow and inflation.
• Crude oil prices tumbled to 20-month lows, slipping below $59 a barrel as concerns about demand continue to chip away at commodity valuation.
• Data from China overnight showed that import growth was slowing and that inflation was at a 17-month low.
• The slide in physical markets gained momentum as the dollar rallied against the euro, with the greenback up 1.5% as the day progressed.
• The Commodity Research Bureau Index of 19 commodity markets tumbled some 3%, sinking to the lowest point since December 2003.
Small Cap Gainers:
• Optimer Pharmaceuticals Inc. jumped 87% on news that the firm’s antibiotic drug met late-stage trial goals. See (Nasdaq:OPTR).
• Clear Channel Outdoor Holdings closed up 27% despite being downgraded . . .
Profit worries, Europe slide keep small caps in red
Small-cap stocks remained in negative territory into mid-session, pressured by worries about corporate profitability in a sluggish economic environment around the world. At 12:21 p.m. ET, the Russell 2000 (NYSE:IWM) was off 10.23, or 2.07%, at 482.87; meanwhile, losses in the Dow and S&P 500 were running about 1% deeper than what was seen in small caps.
European shares tumbled about 4% for the day, following step with steep declines on many Asian bourses, which clearly sent a chill through American equities as well. Declines in Russia got so bad that they halted trading until Thursday with a 12% loss in tow. Central bank officials in Russia actually raised rates today, hoping to fight capital flight and inflation. Credit futures are near contract highs, with European bond futures making contract highs today, which shows that money flow is into credit instruments, not equities.
Meanwhile, crude oil prices tumbled to 20-month lows today, slipping below $59 a barrel, which kept energy and commodity stocks on the defensive. Looking at S&P sector activity so far today, the only area showing decent strength is agriculture products. Meanwhile, real estate services are getting hammered; tire and rubber and automobile manufacturers are hurting, wireless telecoms are getting clobbered, insurance stocks are down hard, metals and mining shares are down, life insurers are taking a hit and coal stocks are getting smoked.
As for the insurers, analysts at Goldman Sachs lowered ratings on the group . . .
Small-caps tumble; OPTR, CRXL, and GLDD lead gainers
Other Market Watch highlights today included:
• Ernst & Young survey: 52% of CEOs of Russell 2000 companies expect no real economic upswing until 2010.
• As for the crude oil, the market for black gold was down about $2 a barrel into the U.S. stock market opening and briefly printed below $60.
• Small caps tumbled on the open, pulled down by spillover selling from a decline in overseas markets fueled by a weak tone in financial and commodity shares.
• Emerging markets were taking a hit this morning, with stock markets in Russia slipping 9% at times overnight, while shares in Dubai off 7%.
Small Cap Gainers:
• Optimer Pharmaceuticals soaring 75% in pre-market on Phase 3 news. See (Nasdaq:OPTR).
• Biotech firm Crucell swings to profit in Q3; shares up over 10% in pre-market. See (Nasdaq:CRXL).
• Morgan Joseph upgrades Great Lakes Dredge & Dock Corporation to "buy" from "hold;" shares up 8%. See (Nasdaq:GLDD).
Small Cap Losers:
• Browne & Co. Inc. is off 36% as the marketing communication company took a hit after reporting earnings. See (NYSE:BNE).
• Taleo down 29% ahead of the bell after filing notification with SEC for late filing of Q3 report. See (Nasdaq:TLEO).
• Focus Media Q3 earnings trail Street; Q4 outlook weak. Shares are slumping 35% in pre-market. See (Nasdaq:FMCN).
• Sangamo Biosciences nerve drug fails a mid-stage trial, shares sink 60% in pre-market. See (Nasdaq:SGMO).
Small caps extend Monday's slide
Small-cap stocks tumbled on the open, pulled down by spillover selling from a decline in overseas markets fueled by a weak tone in financial and commodity shares. At 10:00 a.m. ET, the Russell 2000 (NYSE:IWM) was down 11.42, or 2.32%, at 481.69.
Slumping energy and commodity values already took a toll on overseas equities heading toward this morning’s opening. Shares in emerging market countries that are heavily dependent on energy exports — such as Russia and Dubai — were down as much as 9% overnight. Around the world, stock were off 3% in Japan, Hong Kong was down 4.7%, China off 1.1%, Taiwan down 2.1%, Australia off 3.5%, Singapore down 4.1%, South Korea off 2.1% and India down a whopping 6.6%.
As for the crude oil, the market for black gold was down about $2 a barrel into the U.S. stock market opening and briefly printed below $60. Copper, which is considered a key economic indicator, slipped 3% in London and aluminum producer and Dow component Alcoa Inc. (NYSE:AA) said that they were slashing output in this difficult demand environment.
This morning’s soft tone on commodities certainly is a quick turnabout from Monday morning, when commodity markets were in rally mode in Asia and Europe. If you’re wondering why Monday’s “great news” rally out of Asia on China’s announcement to implement a $586 billion stimulus plan, Northern Trust’s James Pressler penned a great piece on the news, questioning how much of the plan was actually “new” stimulus and just how the money to pay for the plan would be raised.
“Given the vagaries of how much real spending was in yesterday’s announcement, we are hesitant to significantly modify China’s growth forecasts upward or downplay the many risks facing the country’s struggling export economy and encumbered financial system,” Pressler said in an email. “However, we do feel that the uncertainties regarding how China will pay this bill will haunt global markets. If Beijing simply issues 4 trillion (yuan) in debt to cover its tab, then the long-term impact would be a manageable domestic issue. However, if it considers liquidating any of its many U.S.-backed assets or no longer buying as much of our debt, this New Deal . . .
YRC Worldwide, AgFeed Industries and A Power Energy Generation Systems among 52-week lows
Also included among the results: CBL & Associates REIT (Nasdaq:CBL), OfficeMax Inc. (Nasdaq:OMX), Arlington Tankers Ltd. (Nasdaq:ATB), Xyratex Ltd. (Nasdaq:XRTX), Bowne & Co Inc. (Nasdaq:BNE) and Consolidated Graphics Inc. (Nasdaq:CGX).
Here are the new 52-week lows among small caps:
Mild early slip for the Russell
Small-cap stocks edged lower in morning trading, pulled down by follow through jitters from Tuesday’s financial-tied slide and a firm tone in energy as a batch of morning economic data failed to impress investors. At 10:02 a.m. ET, the Russell 2000 (NYSE:IWM) was down 1.61, or 0.22%, at 743.33.
The market was already struggling ahead of the economic reports this morning, and there simply wasn’t any upside surprise on the retail sales or import price fronts to spark a recovery move. Still, the retail sales figure was in line with expectations, while the import price surge isn’t exactly a surprise. Import prices soared 1.7%, which was above the forecast, and year-over-year prices were up 21.6%, the highest rate in 26 years, stealing some of the thunder away from retail sales. The jump on inflation reflected in the import price report sparked a modest pullback in Treasury futures, which frown on rising prices that devalue fixed income investments.
The dollar was little changed after the duo of economic reports, but did start to strengthen against the euro into the U.S. stock market open after slipping to six-month highs during Tuesday’s session. The greenback remained soft against the yen, however, and has been in correction mode since leaping to seven-month highs just three sessions ago. The firmness in the yen is a little surprising given a slide in GDP overnight that stirred a 2.1% fall in Japanese equities. Elsewhere around the globe, stocks were trading in weak fashion, with Hong Kong shares off 1.6%, Australia down 2% and India down 0.7%.
At 10:00 a.m. ET, the business inventory report came out at plus 0.7%, which was above the forecast for a rise of 0.4%. This particular data series is somewhat dated (June figures) and tends to have very little lasting impact on stock market traders.
With the economic data now out of the way, stock market traders here in the United States will likely keep a close watch on financials and on crude oil as . . .
Russell 2000 rebounds
The Russell 2000 (NYSE:IWM) is posting solid gains after recovering from its earlier losses.
At 11:23 a.m. ET, the small-cap index had added 3.94 points, or 0.55%, to 714.59. The Dow Jones Industrial Average was up 10.18 points, or 0.08%, to 12,664.54.
Small-cap stocks began moving sharply higher and broke into positive territory at about 10:30 a.m. ET, despite news of U.S. Federal Reserve chairman Ben Bernanke’s generally pessimistic testimony in front of the congressional Joint Economic Committee.
“It now appears likely that real gross domestic product will not grow much, if at all, over the first half of 2008 and could even contract slightly,” Bernanke said. News of the bearish assessment was largely responsible for stocks opening in the red.
The Fed chief also said that disposable-income growth has slowed while inflation has remained a concern; however, the economy could improve later in 2008.
“We expect economic activity to strengthen in the second half of the year, in part as the result of stimulative monetary and fiscal policies,” Bernanke said. Some observers . . .
