The SPX was stable around 1085. A gap down brought it below that support level this morning, but it quickly recovered. This is the level that bulls need to hold and buyers stepped-up and supported 1085 today. Volume was high, and decliners nudged out

DryShips Inc. (Nasdaq:DRYS), AgFeed Industries Inc. (Nasdaq:FEED) and James River Coal Co. (Nasdaq:JRCC) are among the most actively traded companies in Friday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Electro-Optical Sciences Inc. (Nasdaq:MELA), A Power Energy Generation Systems Ltd. (Nasdaq:APWR), Canadian Solar Inc. (Nasdaq:CSIQ), Eagle Bulk Shipping Inc. (Nasdaq:EGLE), Smith & Wesson Holding Corp. (Nasdaq:SWHC) and ADC Telecommunications Inc. (Nasdaq:ADCT).

Stocks moved in a seesaw pattern today as they opened high and then slid during the opening hours only to sharply pick up before noon eastern time.

Shares on the Dow closed up 28 points to end the day at 8,359. The Nasdaq finished up 7 points to close at 1,800 and the S&P 500 was up almost 5 points to close at 906.

The Russell 2000, an index of the 2,000 most influential small-cap stocks as determined by Russell Investments, closed the day's trading session at 496, up 3 points.

Small-cap volume leaders today include beleaguered finance firm CIT Group (NYSE:CIT) trading 165 million shares, followed by American International Group (NYSE:AIG), and previous SmallCapInvestor PRO recommendation DryShips (Nasdaq:DRYS). (Find out more here)

Price gainers in the small-cap space were lead by Nevsun Resources (AMEX:NSU) up 32% following news that it had received all approvals for debt facilities totaling $235 million to begin mining copper and gold in Eritrea. The Vancouver-based mining firm expects to be able to repay the entire debt within two and one-half years.

Other small-cap gainers include Noven Pharmaceuticals (Nasdaq:NOVN) up 22% on news that Japan-based Hisamitsu Pharmaceutical plans to increase its U.S. presence in purchasing the company for $16.50 a share; Excel Maritime Carriers (NYSE:EXM) up 21%; and CIT Group (NYSE:CIT) up 20%.

*****The day after the home run derby was held during baseball's All-Star festivities, it's probably appropriate that Goldman Sachs (NYSE:GS) hit it one out of the park.

I'm referring to Goldman's 2nd Quarter earnings blowout. Goldman beat revenue and earnings estimates by better than 30%. Clearly, just like the sluggers in the homerun derby, Goldman had softball pitches thrown right down the center of the plate to hit.

Don't forget that even the bears' best friend, bank analyst Meredith Whitney, turned bullish on Goldman yesterday. It would appear that she could see the writing on the wall - analyst estimates were simply too low.

But why? How could analysts miss Goldman's quarter by such a wide margin? Could it be that they are deliberately low-balling estimates to keep the rally going?

*****Goldman Sachs is up in the early going, but not as much as you might expect. That suggests that the blowout numbers aren't a surprise at all. It was already priced in during Monday's 10% rally.

This type of behavior from analysts puts individual investors in a difficult position. I suspect that buyers above $150 will be showing a loss in the near future. Once again, we are being suckered. And that's business as usual for Wall Street.

*****If you focus on the gain in the Producer Price Index (PPI) from this morning, you're probably thinking that inflation is on its way after prices rose 1.8% in June.

But if you focus on retail sales, you probably see the 0.6% rise in retail sales as a sign of recovery.

So which is it: inflation or recovery? The answer is: both. Inflation is an inevitable by-product of economic expansion.

Now, obviously, the U.S. economy is still playing catch-up. And there's an outside possibility that the economy will grow this quarter. But the most important thing to realize is that both the retail sales number and the PPI number are almost directly related to government actions.

If you exclude auto and gasoline sales, retail sales actually fell for a fourth straight month. Auto sales have been helped by government incentives to trade in a gas guzzling clunker for a new, more efficient vehicle.

The PPI was affected by another government incentive program - the yield on Treasury bills. As the Treasury sells more and more bonds, it has to offer a higher yield to entice buyers. This, along with the sheer amount off Treasuries that are being sold, is driving the value of the U.S. dollar down. That, in turn, is driving oil and gas prices higher. Without food and energy, the PPI only rose 0.5%.

*****Government actions are currently filling in for an actual economy. That's how it is in our new "Managed America." Most expect the heavy hand of government to be temporary, and that Managed America can end sooner than later. We'll see…

I expect the conditions of Managed America - high unemployment, sluggish growth, more regulations, higher taxes, and inflation to last years instead of months. And I've outlined my expectations for investing under these conditions in my new Special Issue of Top Stock Insights. The article is titled Managed America: The New Economic Reality. It will be released tomorrow. You can sign up for Top Stock Insights and get my blueprint for profiting in Managed America when you click here. You'll also be on the list to receive my Predictions 2009 Issue update for the remainder of this year.

DryShips Inc. (Nasdaq:DRYS), Eagle Bulk Shipping Inc. (Nasdaq:EGLE) and Sierra Wireless Inc. (Nasdaq:SWIR) are among the most actively traded companies in Friday's trading among companies with market capitalizations under $1 billion.

Also included among the results: AMAG Pharmaceuticals Inc. (Nasdaq:AMAG), James River Coal Co. (Nasdaq:JRCC), Applied Micro Circuits Corp. (Nasdaq:AMCC), Acme Packet Inc. (Nasdaq:APKT), S1 Corp. (Nasdaq:SONE) and Force Protection Inc. (Nasdaq:FRPT).

Sequenom Inc. (Nasdaq:SQNM), DryShips Inc. (Nasdaq:DRYS) and UAL Corp. (Nasdaq:UAUA) are among the most actively traded companies in Thursday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Geron Corp. (Nasdaq:GERN), Eagle Bulk Shipping Inc. (Nasdaq:EGLE), FormFactor Inc. (Nasdaq:FORM), GSI Commerce Inc. (Nasdaq:GSIC), Canadian Solar Inc. (Nasdaq:CSIQ) and Methanex Corp. (Nasdaq:MEOH).

SunPower (Nasdaq:SPWRA), DryShips Inc. (Nasdaq:DRYS) and UAL Corp. (Nasdaq:UAUA) are among the most actively traded companies in Wednesday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Buffalo Wild Wings Inc. (Nasdaq:BWLD), Geron Corp. (Nasdaq:GERN), Kendle International Inc. (Nasdaq:KNDL), Eagle Bulk Shipping Inc. (Nasdaq:EGLE), True Religion Apparel Inc. (Nasdaq:TRLG) and Zoran Corp. (Nasdaq:ZRAN).

DryShips Inc. (Nasdaq:DRYS), Heidrick & Struggles International Inc. (Nasdaq:HSII) and Parexel International Corporation (Nasdaq:PRXL) are among the most actively traded companies in Monday's trading among companies with market capitalizations under $1 billion.

DryShips Inc. (Nasdaq:DRYS), Acorda Therapeutics Inc. (Nasdaq:ACOR) and Abiomed Inc. (Nasdaq:ABMD) are among the most actively traded companies in Wednesday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Geron Corp. (Nasdaq:GERN), Medarex Inc. (Nasdaq:MEDX), GMX Resources Inc. (Nasdaq:GMXR), UAL Corp. (Nasdaq:UAUA), A Power Energy Generation Systems Ltd. (Nasdaq:APWR) and NetGear Inc. (Nasdaq:NTGR).

DryShips Inc. (Nasdaq:DRYS), Geron Corp. (Nasdaq:GERN) and P.F. Chang's China Bistro Inc. (Nasdaq:PFCB) are among the most actively traded companies in Wednesday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Medarex Inc. (Nasdaq:MEDX), Kendle International Inc. (Nasdaq:KNDL), Canadian Solar Inc. (Nasdaq:CSIQ), UAL Corp. (Nasdaq:UAUA), A Power Energy Generation Systems Ltd. (Nasdaq:APWR) and Eagle Bulk Shipping Inc. (Nasdaq:EGLE).

DryShips Inc.(Nasdaq:DRYS), Zhongpin Inc.(Nasdaq:HOGS) and Integrated Device Technology Inc.(Nasdaq:IDTI) are among the most actively traded companies in Tuesday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Astec Industries Inc.(Nasdaq:ASTE), Eagle Bulk Shipping Inc.(Nasdaq:EGLE), TBS International Ltd.(Nasdaq:TBSI), BreitBurn Energy Partners L P (Nasdaq:BBEP), Pinnacle Financial Partners Inc.(Nasdaq:PNFP) and GT Solar International Inc.(Nasdaq:SOLR).

DryShips Inc. (Nasdaq:DRYS), A Power Energy Generation Systems Ltd. (Nasdaq:APWR) and Allos Therapeutics Inc. (Nasdaq:ALTH) are among the most actively traded companies in Monday's trading among companies with market capitalizations under $1 billion.

Also included among the results: BreitBurn Energy Partners L P (Nasdaq:BBEP), Eagle Bulk Shipping Inc. (Nasdaq:EGLE), GMX Resources Inc. (Nasdaq:GMXR), Focus Media Holding Ltd. (Nasdaq:FMCN), UAL Corp. (Nasdaq:UAUA) and GigaMedia Ltd. (Nasdaq:GIGM).

Stocks are flying high Friday afternoon buoyed by better-than-expected earnings releases out this week from benchmark companies and financial institutions.

At 1:58 pm ET, the Russell 2000 (NYSE:IWM) is up 1.46% or 480.80, while the Dow is up 0.56% and the S&P 500 is climbing 0.92%.

After announcing a quarterly cash dividend along with fourth-quarter results, small-cap Virco Manufacturing Corp. (Nasdaq:VIRC) is up a stunning 60%, while DryShips (Nasdaq:DRYS) is 25% higher after being upgraded to “outperform” by Oppenheimer. (DRYS was one of the three promising shipping stocks we included in our recent special report on dry bulk shippers. You can click here for a copy of the report.)

******Stocks have marched steadily higher since March 9. The first 10 days or so of the rally was a mad dash, which is how recovery rallies behave. But since the huge up day on March 23, stocks have settled higher. The S&P is now within spitting distance of its 2009 highs.

There’s no doubt that investors have been pricing in some fairly optimistic expectations. And so far this earnings season is rewarding that optimism.

Now, I’m not saying that earnings have been great. The point is, earnings haven’t been terrible. Or at least, not as terrible as investors thought they’d be back in February.

You may recall that many analysts were saying first-quarter earnings would be when we’d really see just how bad the economy has been. It’s still early in earnings season, but we’ve heard from some important companies. I think it’s safe to say that earnings could have been much worse.  

*****Take General Electric (NYSE:GE), for example. GE stock price is down 63% form its 52-week highs. It cut its dividend and lost its AAA debt rating. That’s . . .

DryShips Inc. (Nasdaq:DRYS), Landrys Restaurants Inc. (Nasdaq:LNY) and Zumiez Inc. (Nasdaq:ZUMZ) are among the biggest percentage gainers in Friday's trading among companies with market capitalizations under $1 billion.

Also included among the results: GMX Resources Inc. (Nasdaq:GMXR), Danaos Corp. (Nasdaq:DAC), Tempur Pedic International Inc. (Nasdaq:TPX), Rubicon Technology Inc. (Nasdaq:RBCN), Eagle Bulk Shipping Inc. (Nasdaq:EGLE) and Genco Shipping & Trading Ltd. (Nasdaq:GNK).

DryShips Inc (Nasdaq:DRYS), Zhongpin Inc (Nasdaq:HOGS) and AngioDynamics Inc (Nasdaq:ANGO) are among the most actively traded companies in Friday's trading among companies with market capitalizations under $1 billion.

Also included among the results: ICU Medical Inc. (Nasdaq:ICUI), Eagle Bulk Shipping Inc. (Nasdaq:EGLE), Central European Distribution Corp. (Nasdaq:CEDC), Geron Corp. (Nasdaq:GERN), The9 Ltd. (Nasdaq:NCTY) and Apollo Investment Corp. (Nasdaq:AINV).

DryShips Inc. (Nasdaq:DRYS), Geron Corp. (Nasdaq:GERN) and The9 Ltd. (Nasdaq:NCTY) are among the most actively traded companies in Thursday's trading among companies with market capitalizations under $1 billion.

Also included among the results: A Power Energy Generation Systems Ltd. (Nasdaq:APWR), Focus Media Holding Ltd. (Nasdaq:FMCN), Titan Machinery Inc. (Nasdaq:TITN), UAL Corp. (Nasdaq:UAUA), Meridian Bioscience Inc. (Nasdaq:VIVO) and AsiaInfo Holdings Inc. (Nasdaq:ASIA).

DryShips Inc. (Nasdaq:DRYS), UAL Corp. (Nasdaq:UAUA) and Geron Corp. (Nasdaq:GERN) are among the most actively traded companies in Wednesday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Smart Balance Inc. (Nasdaq:SMBL), Cabot Microelectronics Corp. (Nasdaq:CCMP), Eagle Bulk Shipping Inc. (Nasdaq:EGLE), A Power Energy Generation Systems Ltd. (Nasdaq:APWR), Almost Family Inc. (Nasdaq:AFAM) and The9 Ltd. (Nasdaq:NCTY).

Dendreon Corp. (Nasdaq:DNDN), DryShips Inc. (Nasdaq:DRYS) and A Power Energy Generation Systems Ltd. (Nasdaq:APWR) are among the most actively traded companies in Tuesday's trading among companies with market capitalizations under $1 billion.

Also included among the results: BLDRS Emerging Markets 50 ADR Index (Nasdaq:ADRE), Medarex Inc. (Nasdaq:MEDX), UAL Corp. (Nasdaq:UAUA), Dress Barn Inc. (Nasdaq:DBRN), Gymboree Corp. (Nasdaq:GYMB) and Take Two Interactive Software Inc. (Nasdaq:TTWO).

Dendreon Corp. (Nasdaq:DNDN), DryShips Inc. (Nasdaq:DRYS) and China Medical Technologies Inc. (Nasdaq:CMED) are among the most actively traded companies in Wednesday's trading among companies with market capitalizations under $1 billion.

Also included among the results: UAL Corp. (Nasdaq:UAUA), Apogee Enterprises Inc. (Nasdaq:APOG), Energy Conversion Devices Inc. (Nasdaq:ENER), China Sky One Medical Inc. (Nasdaq:CSKI), Alkermes Inc. (Nasdaq:ALKS) and Smith & Wesson Holding Corp. (Nasdaq:SWHC).

Dendreon Corp (Nasdaq:DNDN), DryShips Inc (Nasdaq:DRYS) and OmniVision Technologies Inc (Nasdaq:OVTI) are among the most actively traded companies in Monday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Clean Energy Fuels Corp (Nasdaq:CLNE), DrdGold ADR (Nasdaq:DROOY), Cepheid (Nasdaq:CPHD), Matrix Service Co (Nasdaq:MTRX), Sun Bancorp Inc (Nasdaq:SNBC) and STEC Inc (Nasdaq:STEC).

DryShips Inc. (Nasdaq:DRYS), Heidrick & Struggles International Inc. (Nasdaq:HSII) and DrdGold ADR (Nasdaq:DROOY) are among the most actively traded companies in Friday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Computer Programs And Systems Inc. (Nasdaq:CPSI), OmniVision Technologies Inc. (Nasdaq:OVTI), Canadian Solar Inc. (Nasdaq:CSIQ), Schnitzer Steel Industries Inc. (Nasdaq:SCHN), Energy Conversion Devices Inc. (Nasdaq:ENER) and Natus Medical Inc. (Nasdaq:BABY).

DryShips Inc. (Nasdaq:DRYS), Canadian Solar Inc. (Nasdaq:CSIQ) and Energy Conversion Devices Inc. (Nasdaq:ENER) are among the most actively traded companies in Thursday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Manhattan Associates, Inc. (Nasdaq:GEOI), Volcom Inc. (Nasdaq:VLCM), SVB Financial Group (Nasdaq:SIVB), Copano Energy LLC (Nasdaq:CPNO) and DrdGold ADR (Nasdaq:DROOY).

Sun Healthcare Group Inc. (Nasdaq:SUNH), DryShips Inc. (Nasdaq:DRYS) and Isle of Capri Casinos Inc. (Nasdaq:ISLE) are among the most actively traded companies in Wednesday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Ameristar Casinos Inc. (Nasdaq:ASCA), Grand Canyon Education Inc. (Nasdaq:LOPE), Eclipsys Corp. (Nasdaq:ECLP), Old Dominion Freight Line Inc. (Nasdaq:ODFL), Dress Barn Inc. (Nasdaq:DBRN) and Resources Connection Inc. (Nasdaq:RECN).

QC Holdings Inc. (Nasdaq:QCCO), Consolidated Water Co Ltd. (Nasdaq:CWCO) and SYNNEX Corp. (Nasdaq:SNX) are among the most actively traded companies in Monday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Vitran Corp Inc. (Nasdaq:VTNC), Young Innovations Inc. (Nasdaq:YDNT), DryShips Inc. (Nasdaq:DRYS), GT Solar International Inc. (Nasdaq:SOLR), Plantronics Inc. (Nasdaq:PLT) and Excel Maritime Carriers Ltd. (Nasdaq:EXM).

Consolidated Water Co Ltd. (Nasdaq:CWCO), SYNNEX Corp. (Nasdaq:SNX) and RXi Pharmaceuticals Corp. (Nasdaq:RXII) are among the biggest percentage gainers in Friday's trading among companies with market capitalizations under $1 billion.

Also included among the results: United Rentals Inc. (Nasdaq:URI), DryShips Inc. (Nasdaq:DRYS), Echelon Corp. (Nasdaq:ELON), Lululemon Athletica Inc. (Nasdaq:LULU), Plantronics Inc. (Nasdaq:PLT) and Young Innovations Inc. (Nasdaq:YDNT).

DryShips Inc. (Nasdaq:DRYS), Osiris Therapeutics Inc. (Nasdaq:OSIR) and Solarfun Power Holdings Co Ltd. (Nasdaq:SOLF) are among the most actively traded companies in Friday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Canadian Solar Inc. (Nasdaq:CSIQ), Sun Bancorp Inc. (Nasdaq:SNBC), ATP Oil & Gas Corporation (Nasdaq:ATPG), Energy Conversion Devices Inc. (Nasdaq:ENER), NBT Bancorp Inc. (Nasdaq:NBTB) and UAL Corp. (Nasdaq:UAUA).

DryShips Inc. (Nasdaq:DRYS), Computer Programs And Systems Inc. (Nasdaq:CPSI) and TiVo Inc. (Nasdaq:TIVO) are among the most actively traded companies in Wednesday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Semtech Corp. (Nasdaq:SMTC), Cabot Microelectronics Corp. (Nasdaq:CCMP), HMS Holdings Corp. (Nasdaq:HMSY), Imperial Sugar Co. (Nasdaq:IPSU), Arkansas Best Corp. (Nasdaq:ABFS) and Focus Media Holding Ltd. (Nasdaq:FMCN).

DryShips Inc. (Nasdaq:DRYS), Focus Media Holding Ltd. (Nasdaq:FMCN) and Ener1 Inc. (Nasdaq:HEV) are among the biggest percentage gainers in Tuesday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Innophos Holdings Inc. (Nasdaq:IPHS), China Biotics Inc. (Nasdaq:CHBT), Micrus Endovascular Corp. (Nasdaq:MEND), HADERA PAPER Ltd. (Nasdaq:AIP), Beacon Federal Bancorp Inc. (Nasdaq:BFED) and Genco Shipping & Trading Ltd. (Nasdaq:GNK).

DryShips Inc. (Nasdaq:DRYS), Palm Inc. (Nasdaq:PALM) and Arris Group Inc. (Nasdaq:ARRS) are among the most actively traded companies in Friday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Chemical Financial Corp. (Nasdaq:CHFC), TIBCO Software Inc. (Nasdaq:TIBX), Lamar Advertising Co. (Nasdaq:LAMR), Wesbanco Inc. (Nasdaq:WSBC), S&T Bancorp Inc. (Nasdaq:STBA) and Bruker Corp. (Nasdaq:BRKR).

Stocks turned lower during Thursday trading after a new jobless claims report released today cast a pall on a rally that began days ago.

At 12:13 pm ET, the Russell 2000 (NYSE:IWM) is down 3.37, or 0.81%, at 414.26, while the Dow is down 1.12%, at 7,402.71, and S&P 500 is down 0.99% at 786.51.

Stocks opened higher this morning on lingering investor enthusiasm over Wednesday’s news that the Fed is planning to pump $1 trillion into the economy. The good news failed to last long though as new jobless claims data this morning showed a higher-than-expected drop of 646,000, while continuing claims set a new record.

Small caps making double-digit gains this afternoon include dry-bulk shipper DryShips (Nasdaq:DRYS), which is up 22% after announcing a $630 million three-year contract from Petrobras. Energy companies are also rising today as oil is climbing back above $50 per barrel. James River Coal (Nasdaq:JRCC) is up 19% on lower-than-average volume, while Rex Energy Corp. (Nasdaq:REXX) is up over 27%.

Rambo Bernanke

On Wednesday, the FOMC voted unanimously to buy over $1 trillion dollars in U.S. Treasury bills, corporate bonds, mortgages and consumer debt.

Chief economist at Bank of New York Mellon Corp. called it a “Rambo Fed” move in a Bloomberg interview.

Bonds immediately rallied, with the 10-year note putting in the biggest one-day gain since 1962. Stocks rallied, too, which is a bit unusual. Bond and stock prices tend to move in opposite directions. When stocks appear risky, money goes into the safe haven of bonds, and vice versa. But these are strange times, and with the Fed taking unprecedented steps to ward off deflation and get lending moving again, it’s not that surprising that some old relationships are being tested.

Bernanke’s intent is clear – he wants to make sure interest rates stay low. Overnight interest rates are already zero. Any more easing and the Fed . . .

New Century Bancorp Inc. (Nasdaq:NCBC), Medicis Pharmaceutical Corp. (Nasdaq:MRX) and DryShips Inc. (Nasdaq:DRYS) are among the biggest percentage gainers in Thursday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Marcus Corp. (Nasdaq:MCS), James River Coal Co. (Nasdaq:JRCC), Basic Energy Services Inc. (Nasdaq:BAS), Adams Resources & Energy Inc. (Nasdaq:AE), Cardiovascular Systems Inc. (Nasdaq:CSII) and AK Steel Holding Corp. (Nasdaq:AKS).

CV Therapeutics Inc. (Nasdaq:CVTX), Interwoven Inc. (Nasdaq:IWOV) and DryShips Inc. (Nasdaq:DRYS) are among the most actively traded companies in Monday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Palm Inc (Nasdaq:PALM), Apollo Investment Corp (Nasdaq:AINV), Eagle Bulk Shipping Inc (Nasdaq:EGLE), Ameristar Casinos Inc (Nasdaq:ASCA), Geron Corp (Nasdaq:GERN) and NetScout Systems Inc (Nasdaq:NTCT).

Stocks reversed course mid-week and made solid gains today thanks to bargain-hunters who were on the prowl, and on rumors that China may release a new stimulus package. Some of today’s small-cap gainers were Toreador Resources (Nasdaq:TRGL), DryShips (Nasdaq:DRYS) and ADC Telecommunications (Nasdaq:ADCT).

Other Market Watch highlights today included:

• The Russell 2000 (NYSE:IWM) closed up 6.46, or 1.79%, to 367.47. The Dow closed up 2.09% to 6,866.44 and the S&P 500 closed up 2.38% to 712.87. 
• For the year, the Russell is now down 26.43%, the Dow is down 21.76% and the S&P 500 is down 21.08%.
• The Fed released a survey today that showed the U.S. economy has deteriorated in the past 2 months and that the outlook for a quick recovery is bleak.
• ADP Employer services reported this morning that private employers cut 697,000 jobs in February versus a revised 614,000 jobs lost in January. The January job cuts were originally reported at 522,000.
• Rumors that China may announce a huge stimulus bill lifted global stock markets higher overnight.
• The Obama administration released a foreclosure prevention program today that also helped buoy stocks higher.
• Oil prices climbed 9% to $45.38 after global stock markets rallied and the U.S. government reported that crude levels in storage unexpectedly shrank.

Small Cap Gainers:

• Toreador Resources Corporation climbed 25% today after completing its Black Sea assets sale. See (Nasdaq:TRGL).
• DryShips closed up 40% following an update of its sale and purchase activities released on Tuesday. See (Nasdaq:DRYS).
• ADC Telecommunications rose 29% after reporting Q1 results and . . .

Stocks are trading higher today on rumors that China may release a new economic stimulus package soon.

At 1:35 pm ET, the Russell 2000 (NYSE:IWM) is up 6.46, or 1.79%, at 367.47. The Dow is up 2.09% at 6,866.44, and the S&P 500 is up 2.03% at 710.45.

The Obama administration released a foreclosure prevention program today that also helped buoy stocks higher. The $75 billion plan targets 9 million borrowers, and aims to help more homeowners refinance into lower interest rates, and offers incentives to lenders to restructure mortgages to affordable levels.

ADP Employer services reported this morning that private employers cut 697,000 jobs in February versus a revised 614,000 jobs lost in January. The January job cuts were originally reported at 522,000.

Small caps on the move this afternoon include Toreador Resources Corporation (Nasdaq:TRGL), up nearly 30% after completing its Black Sea assets sale. DryShips (Nasdaq:DRYS) is 33% higher after announcing an update of its sale and purchase activities, and ADC Telecommunications (Nasdaq:ADCT) is flying 22% higher after reporting Q1 results and announcing it will cut 600 jobs.

Obama the Analyst

President Obama said stocks look like a good buy here, if you have a long-term perspective. Thanks for that, I feel much better now.

*****As much time as Fed Chief Bernanke spends before Congress, it's amazing he gets any work done. 
I have to say, I'm starting to like Bernanke. His forthright talk is certainly a refreshing change from Greenspan's garbled speech. Yesterday, he expressed his feelings about all the bailouts. From Bloomberg:

"If there is a single episode in this entire 18 months that has made me more angry, I can't think of one other than AIG," Bernanke said. "AIG exploited a huge gap in the regulatory system, there was no oversight of the financial-products division, this was a hedge fund basically that was attached to a large and stable . . .

DryShips Inc. (Nasdaq:DRYS), ViroPharma Inc. (Nasdaq:VPHM) and Canadian Solar Inc. (Nasdaq:CSIQ) are among the most actively traded companies in Tuesday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Provident Bankshares Corp. (Nasdaq:PBKS), GT Solar International Inc. (Nasdaq:SOLR), Arena Pharmaceuticals Inc. (Nasdaq:ARNA), Verigy Ltd. (Nasdaq:VRGY), Palm Inc. (Nasdaq:PALM) and Ceradyne Inc. (Nasdaq:CRDN).

DryShips Inc (Nasdaq:DRYS), Geron Corp (Nasdaq:GERN) and Eagle Bulk Shipping Inc (Nasdaq:EGLE) are among the most actively traded companies in Monday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Palm Inc (Nasdaq:PALM), Tower Group Inc (Nasdaq:TWGP), TBS International Ltd (Nasdaq:TBSI), GMX Resources Inc (Nasdaq:GMXR), GT Solar International Inc (Nasdaq:SOLR) and Neogen Corp (Nasdaq:NEOG).

DryShips Inc (Nasdaq:DRYS), Geron Corp (Nasdaq:GERN) and Skyworks Solutions Inc (Nasdaq:SWKS) are among the most actively traded companies in Friday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Idenix Pharmaceuticals Inc (Nasdaq:IDIX), Paragon Shipping Inc (Nasdaq:PRGN), Palm Inc (Nasdaq:PALM), Indevus Pharmaceuticals Inc (Nasdaq:IDEV), Eagle Bulk Shipping Inc (Nasdaq:EGLE) and Phase Forward Inc (Nasdaq:PFWD).

DryShips Inc. (Nasdaq:DRYS), Eagle Bulk Shipping Inc. (Nasdaq:EGLE) and American Capital Agency Corp. (Nasdaq:AGNC) are among the most actively traded companies in Thursday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Geron Corp. (Nasdaq:GERN), Gladstone Capital Corp. (Nasdaq:GLAD), Ariba Inc. (Nasdaq:ARBA), Palm Inc. (Nasdaq:PALM), Rofin-Sinar Technologies Inc. (Nasdaq:RSTI) and TBS International Ltd. (Nasdaq:TBSI).

Small-cap stocks hovered near steady levels in early trading, with pressure from weak corporate profit news countered by bargain hunting, overseas gains and a private employment report that wasn’t as bad as feared. At 9:52 a.m. ET, the Russell 2000 (NYSE:IWM) was down 0.26, or 0.06% at 452.64.

The ADP Employment Survey reflected a loss of 522,000 jobs from non-farm payrolls and projected the Labor Department report Friday would show a decline in jobs of 525,000, which was slightly above the median forecast of 500,000. That said, the market took the ADP figures in stride, with a “it could have been much worse” mentality in play. It’s worth noting that the ADP report was veering way offline for many months before they shifted methodology last month and got back on a tighter track with the Labor Department survey.

In overseas trading, European shares pushed higher despite disappointing December retail sales. The gains were a little dynamic in Asia, where Chinese shares climbed 2.7% as the government started to release funds for stimulus programs and Indonesia cut interest rates. Tech stocks, electronics makers and auto stocks were among the better performers in Asian trading overnight.

Here in the United States, much of the individual corporate profit news was gloomy this morning, including disappointments from The Walt Disney Co. (NYSE:DIS), Costco Wholesale Corp. (Nasdaq:COST) and Time Warner Inc. (NYSE:TWX). Shortly . . .

DryShips Inc. (Nasdaq:DRYS), Retalix Ltd. (Nasdaq:RTLX) and Riverbed Technology Inc. (Nasdaq:RVBD) are among the most actively traded companies in Wednesday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Rambus Inc. (Nasdaq:RMBS), Eagle Bulk Shipping Inc. (Nasdaq:EGLE), Geron Corp. (Nasdaq:GERN), Netlogic Microsystems Inc. (Nasdaq:NETL), Ciena Corp. (Nasdaq:CIEN) and Allos Therapeutics Inc. (Nasdaq:ALTH).

Small-cap stocks pushed higher Tuesday, shaking off losses in the banking and financial sector amid gains for homebuilders, drug and energy shares. The Russell 2000 (NYSE:IWM) closed up 3.28, or 0.73%, at 452.90, but lagged gains in the Dow and S&P 500, which takes some of the edge off the advance. For the year, the Russell is down 9.3%, while the Dow is off 7.9% and the S&P 500 is down 7.1%.

The market started off on a defensive note and continued to chop around on both sides of positive ground until the bulls gained traction in the afternoon. About 30 minutes into the session an upbeat reading on pending home sales and an announcement by the Federal Reserve that they would extend various credit windows helped underpin the market.

For the record, pending home sales came in plus 6.3%, well above the forecast for a flat reading. The upside release helped spark a rise in homebuilder stocks with the ISE Homebuilders Index climbing 8.3%. Several key companies in the homebuilder universe fall within small-cap guidelines, including Meritage Homes Corp. (NYSE:MTH), which jumped 17% on the day. Small-cap builders KB Home (NYSE:KBH) rose 10%, while Centex Corp. (NYSE:CTX) was up 10%.

The other piece of economic data in play today came from various sales reports out of automobile companies. As expected, vehicle sales fell off a cliff again in January, with General Motors Corp. (NYSE:GM) collapsing 49%, Ford Motor Co. (NYSE:F) down some 40%, while Toyota Motor Corp. (now the world’s largest automaker) saw a sales drop of 34% and Nissan tumbled 30%. Despite the sober news on sales, Ford shares actually finished higher on the day (up about 4%), while General Motors was down 3%.

Energy shares outpaced the overall market rise today, helped along by a modest 1.7% advance in crude oil futures, which gained $0.70 a barrel to $40.78. Crude prices were underpinned by talk of additional production cuts out of OPEC and some . . .

InterMune Inc. (Nasdaq:ITMN), DryShips Inc. (Nasdaq:DRYS) and John B  San Filippo & Son (Nasdaq:JBSS) are among the biggest percentage gainers in Tuesday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Intersections Inc. (Nasdaq:INTX), HSN Inc. (Nasdaq:HSNI), M I Homes Inc. (Nasdaq:MHO), Celldex Therapeutics Inc. (Nasdaq:CLDX), Tessera Technologies (Nasdaq:TSRA) and Infinera Corp. (Nasdaq:INFN).

DryShips Inc. (Nasdaq:DRYS), DSP Group Inc. (Nasdaq:DSPG) and Signet Jewelers Ord Shs (Nasdaq:SIG) are among the biggest percentage losers in Monday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Bank of Kentucky Financial Corp. (Nasdaq:BKYF), Magal Security Systems (Nasdaq:MAGS), Piper Jaffray Companies (Nasdaq:PJC), WSFS Financial Corp. (Nasdaq:WSFS), Todd Shipyards Corp. (Nasdaq:TOD) and CPI International Inc. (Nasdaq:CPII).

Small-cap stocks started out the week on the same bearish trajectory that was in play late last week, and some of the same themes were blamed for this morning’s ugly start, including worries over corporate profits, the deepening recession and delays on various government stimulus programs. Some of today’s small-cap gainers were Odyssey Marine Exploration Inc. (Nasdaq:OMEX), B/E Aerospace (Nasdaq:BEAV) and Century Aluminum (Nasdaq:CENX).

Other Market Watch highlights today included:

• Energy stocks were a soft spot for the market this morning, pressured by another decline in crude oil prices, off about $1.25/barrel.  
• The ISM Manufacturing Survey came in at 35.6, which was a little better than the projection of 33, but still historically low.
• Small-cap stocks started out the week on the same bearish trajectory that was in play late last week.
• For the year, personal income was up 3.7%, which marked the smallest rise since 2003. 

Small Cap Gainers:

• Odyssey Marine Exploration Inc. was up almost 28% amid news that the firm has found the HMS Victory shipwreck. See (Nasdaq:OMEX).  
• B/E Aerospace full-year 2008 and Q4 financial results; shares rise 5% in pre-market. See (Nasdaq:BEAV).
• Century Aluminum rises 1.4% in pre-market on very light volume. See (Nasdaq:CENX).  

Small Cap Losers:

• Todd Shipyards Corp. fell 17% on a little early volume spike. See (NYSE:TOD).
• ADC Telecommunications Inc. was down 13% as the firm updated the outlook and announced job cuts. See (Nasdaq:ACDT).  
• DryShips down another 13% in pre-market today, extending a major slide that began Thursday morning. See (Nasdaq:DRYS). 

Small-cap stocks started out the week on the same bearish trajectory that was in play late last week, and some of the same themes were blamed for this morning’s ugly start, including worries over corporate profits, the deepening recession and delays on various government stimulus programs. At 10:02 a.m. ET, the Russell 2000 (NYSE:IWM) was down 3.47, or 0.78%, at 440.05.

The ISM Manufacturing Survey came in at 35.6, which was a little better than the projection of 33, but still historically low. The stock market appeared to bounce mildly off the morning lows after the report came out.

Earlier this morning ahead of the opening, the personal income report showed a slight upside surprise in the headline income figure, which came in at minus 0.2%, just above the projection for a decline of 0.3%. However, the spending figure fell 1.0% after being down 0.8%, which shows consumers are retrenching their spending habits to brace for the recession.

Some of today’s early pullback was likely fueled by declines in overseas markets, with Europe off about 2% into the U.S. open, while Asian stocks fell 1.8%. Japan was down 1.5%, while Hong Kong was down 3.1%, Singapore off 2.3%, South Korea down 1.5% and India off 3.7%.

In Europe, bank and financial stocks were in retreat mode following credit agency downgrades for massive bank Barclays. Here in the United States, worries about the housing and credit crises continue to plague bank stocks, which were off . . .

DryShips Inc. (Nasdaq:DRYS), Geron Corp. (Nasdaq:GERN) and Palm Inc. (Nasdaq:PALM) are among the most actively traded companies in Monday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Perfect World Co Ltd. (Nasdaq:PWRD), Rambus Inc. (Nasdaq:RMBS), Ameristar Casinos Inc. (Nasdaq:ASCA), BE Aerospace Inc. (Nasdaq:BEAV), Central European Media Enterprises Ltd. (Nasdaq:CETV) and Iconix Brand Group Inc. (Nasdaq:ICON).

Small-cap stocks finished out the week with a whimper, as talk that a delay in the whole “bad bank” concept was in the mix as lawmakers struggle to define the concept. An upside surprise on GDP provided a brief bullish spark, but details within the report tainted any bullish interpretation of the news. And since GDP was still the worst showing since 1982, maybe any bullish slant on the number would have just been market spin anyhow.

For the day, the Russell 2000 (NYSE:IWM) lost 9.72, or 2.14%, to 443.53 and for the week, the Russell gave up early gains to slip for the fourth consecutive week and finished off the first month of the year with a sizable loss of 11.2%. Meanwhile, the Dow fell 8.8% in January, while the S&P 500 was off 8.5%. This marked the worst start to the year in history for the stock market.

The market started out the day with a modest upside surprise when the quarterly GDP report showed a smaller-than-expected contraction in the U.S. economy in the fourth quarter. The GDP headline figure came in at minus 3.8%, which was quite a bit better than the consensus forecast for a decline of 5.3% and some of the whisper numbers approaching 6%. The upside surprise on GDP helped provide a brief bid for stocks into the opening today, but news didn’t have legs. According to Northern Trust economist Asha Bangalore, some of that was likely due to the devil in the details.

“The minus sign for GDP growth was not a surprise but a larger decline was widely expected,” Bangalore said in an email. “The increase in inventories (+$6.2 billion vs. -$29.6 billion in Q3), which was largely unexpected, offset the weakness in demand and trimmed down the headline reading.” 

In other economic news today, the market seemed to recoil off a reading on Midwest manufacturing activity as the Chicago Purchasing Manager’s survey set a new cycle low at 33.3, which was below the forecast of 34.9. Data on the employment cost index was basically in line with expectations and tends to grab more attention . . .

Data Domain Inc. (Nasdaq:DDUP), Key Technology Inc. (Nasdaq:KTEC) and Lindsay Corp. (Nasdaq:LNN) are among the biggest percentage losers in Friday's trading among companies with market capitalizations under $1 billion.

Also included among the results: BreitBurn Energy Partners L P (Nasdaq:BBEP), DryShips Inc. (Nasdaq:DRYS), AMCOL International Corp. (Nasdaq:ACO), Zion Oil and Gas Inc. (Nasdaq:ZN), Infinera Corp. (Nasdaq:INFN) and Heritage Commerce Corp (Nasdaq:HTBK).

Geron Corp. (Nasdaq:GERN), DryShips Inc. (Nasdaq:DRYS) and Palm Inc. (Nasdaq:PALM) are among the most actively traded companies in Friday's trading among companies with market capitalizations under $1 billion.

Also included among the results: Infinera Corp. (Nasdaq:INFN), Ariba Inc. (Nasdaq:ARBA), Ciena Corp. (Nasdaq:CIEN), Harmonic Inc. (Nasdaq:HLIT), CyberSource Corp. (Nasdaq:CYBS) and Neogen Corp. (Nasdaq:NEOG).

Oshkosh Corp. (Nasdaq:OSK), DryShips Inc. (Nasdaq:DRYS) and Selective Insurance Group Inc. (Nasdaq:SIGI) are among the biggest percentage losers in Thursday's trading among companies with market capitalizations under $1 billion.

Small-cap stocks pushed lower on the opening, pressured by a sloppy batch of earnings reports this morning and another weak slate of economic reports that threatens to break a four-day winning streak for the market. Some of today’s small-cap gainers were POZEN (Nasdaq:POZN), OSI Systems Inc. (Nasdaq:OSIS) and Sepracor (Nasdaq:SEPR).

Other Market Watch highlights today included:

• Crude oil prices have been closely tethered to equities, and today’s rugged economic data reinforces the demand difficulties facing energy companies.   Crude oil prices were on the defensive this morning, with futures off some $1.60 a barrel into the stock market open.  
• The stock market appeared to extend the morning slide after the dreary home sales report.  
• New home sales fell off a cliff today, sinking 14.7% to an annual rate of 331,000 units, way below the forecast of 400,000.  

Small Cap Gainers:

• POZEN informed by FDA that endoscopic gastric ulcer incidence continues to be an acceptable primary endpoint; shares climb 17% in pre-market. See (Nasdaq:POZN). 
• OSI Systems Inc. rose 16% as the electronics system designer received an earnings lift. See (Nasdaq:OSIS).  
• Sepracor rises 10% in pre-market to cut workforce despite rise in profit. See (Nasdaq:SEPR)

Small Cap Losers:

• Banner Corp. fell 15%, gapping lower as the bank holding company announced quarterly results. See (Nasdaq:BANR).  
• Oshkosh Corp. fell 20% as the specialty equipment maker posted a quarterly loss and announced job cuts. See (NYSE:OSK).  
• Arkansas Best swings to loss on 15% lower revenue; stock slides 11% in pre-market. See (Nasdaq:ABFS).  
• DryShips in breach of some loan covenants; shares tumbles over 26% in pre-market. See (Nasdaq:DRYS).