Callon Pete Co (Nasdaq:CPE), Orexigen Therapeutics Inc (Nasdaq:OREX), Citizrns Holding Co (Nasdaq:CIZN) and Medicinova Inc (Nasdaq:MNOV) are among the biggest percentage losers in Tuesday's trading among companies with market capitalizations under $1 billion.

Stocks extended their gains for a second day in a row with all major indices closing up, though below a one percent gain.

The Dow finished the session at 9,398, up 37 points; the Nasdaq closed today at 2,009, up 11 points; and the S&P 500 finished at 1,012, up 7 points.

The Russell 2000 index, a composite of the leading small-cap stocks, closed at 575, up 4 points.

Small-cap price movers were lead by Kodiak Oil (Amex:KOG), up 30%. Following KOG were Dot Hill Systems (Nasdaq:HILL), up 22%; Pacer International (Nasdaq:PACR), up 16%; BioSante Pharmaceuticals (Nasdaq:BPAX), up 16%; and ACADIA Pharmaceuticals (Nasdaq:ACAD), up 16%.

*****Last week's better-than-expected payroll data is being offset by new jobless claims today. 558,000 people filed new claims for unemployment benefits. That was more than the median estimate of 545,000.

The number of people collecting unemployment fell by 141,000 and that lowers the unemployment rate. That sounds good, but I don't think it is. Most likely, benefits for these 141,000 have run out. So what little money they had coming in is now gone and they've just stopped asking. 

*****The most direct effect of massive unemployment is less spending and less revenues for America's retailers. Wal-Mart (NYSE:WMT) beat earnings but missed on revenue. That basically means Wal-Mart fired a bunch of people to cut costs, then those people spent less at the store.

Overall, retail sales were down 1% in July after a 0.8% rise in June. With the unemployment rate still expected to rise to over 10%, and likely to stay at high levels for a few years, there's not a lot of upside for the retail sector.

*****SmallCapInvestor PRO members are just a few pennies away from knocking down another 100% winner. This time, it's a Chinese organic fertilizer company. The stock has been on a tear for the last month. And despite the fact that it's nearly doubled, the forward P/E is 17 and the PEG ratio is .45. In other words, there are more gains to come.

I have a new special situations report with detailed research on my 100% China winner plus two other high flying Chinese stocks. Click here to get this report now.

And speaking of SmallCapInvestor, we're open for voting for the t-shirt slogan for my first book, The Small Cap Investor: Secrets to Winning Big with Small Cap Stocks. There are some excellent slogan ideas, and if you'd like to help pick a winner, you can cast your vote for the best slogan at the SmallCapInvestor Facebook page.

Click here to cast your vote now.

The winner gets a full year subscription to all of my advisory services, so if your slogan is in the running, get friends and family to cast their votes so you can take home the top prize.

I'd like to thank SCI Daily readers for helping with the marketing of my first book. You're helping make it a success and I really appreciate it.

*****I probably shouldn't do this, but TradeMaster Daily Stock Alerts technical analyst Jason Cimpl is alerting his readers to breakouts in the biotech sector. A couple names he's watching are Orexigen (Nasdaq:OREX) and Jazz Pharmaceuticals (Nasdaq:JAZZ).

Jason thinks Jazz is good for a 21% move from current levels, so if you're looking for a short-term trade from TradeMaster, this might be a good one.

Be on the look-out for tomorrow's SCI Daily as Jason will once again provide readers with video charting of the week's movements and most importantly, his outlook for how to trade for profits in the coming week. Look for this in tomorrow's issue of SCI Daily.

*****Investors are ignoring short-term weakness in oil demand and focusing on the long-term fundamentals. Oil prices are back over $71 a barrel today despite the highest reserve levels since 1991.

Barclay's expects oil prices to average $76 a barrel in the third quarter. And don't forget, hurricane season is looming. Oil stocks should be bought on dips.

Ian Wyatt
Editor
SCI Daily

News that Chrysler will be filing bankruptcy is causing stocks to seesaw through Thursday afternoon.

At 2:35 pm ET, the Russell 2000 (NYSE:IWM) is up 0.28%, while the Dow is up 0.25% and the S&P 500 is up 0.32%.

Small caps flying high today include Bare Escentuals (Nasdq:BARE), up 42% after its Q1 results topped the Street’s view. Also higher are Orexigen Therapeutics (Nasdaq:OREX), up 44% on heavy volume, and Green Mountain Coffee Roasters (Nasdaq:GMCR), up 37% after the small cap boosted its FY sales and EPS view.

On the downside, Build-A-Bear Workshop, Inc. (NYSE:BBW) is 20% lower today after posting a Q1 loss, and small-cap Oshkosh Corporation (NYSE:OSK) has falledn 19% after projecting a loss for 2009 and suspending its dividend.

******Bank of America (NYSE:BAC) shareholders voted to remove Ken Lewis as chairman of the board. But he remains CEO, at least for a little while. As much as I railed against Lewis, I must acknowledge that he is a something of a victim.

Now, don’t get me wrong. I have no sympathy for the CEOs who over-leveraged and mismanaged their companies during Wall Street’s greed bonanza. And Lewis was right there with the rest of them.

But when it comes to the Merrill Lynch acquisition and the surrounding events, it’s pretty clear that Fed Chief Ben Bernanke and former Treasury Secretary Paulson hung him out to dry. In other words, I believe Lewis’ assertion that Bernanke and Paulson strong-armed him into the Merrill acquisition and encouraged him to keep his mouth shut about Merrill’s $15 billion fourth-quarter loss.

The one question – and this gets right to the heart of the matter – is why did Lewis play ball? He had to know that his shareholders would be irate. And that’s the point – CEOs ultimately work for their shareholders. And bank CEOs for the most. . .

Stocks opened in the green and are continuing their positive trot through midday, buoyed by Tuesday’s news that beleaguered Citigroup (NYSE:C) is operating at a profit.

At 12:27 pm ET, the Russell 2000 (NYSE:IWM) was up 1.39, or 0.38%, at 369.14, while the Dow was up 0.02% at 6,927.77, and the S&P 500 was up 0.22% at 721.18.

Like Tuesday, financial stocks are leading the markets higher today on the Citigroup news, while tech stocks are also seeing a boost after large-cap benchmark Hewlett-Packard’s rating was upgraded.

While the market seems to be in recovery mode, don’t relax just yet. Analysts are warning that the rally will be short-lived and that there remain deep problems etched within the banking industry.

Small-cap stocks trending upward today include On Assignment, Inc. (Nasdaq:ASGN), 23% higher on lower-than-average volume, and YRC Worldwide Inc. (Nasdaq:YRCW), which is 11% higher despite making Moody’s “Bottom Rung List.” Axsys Technologies (Nasdaq:AXYS), a manufacturer of defense surveillance and imaging systems, is up 34% after the small cap put itself up for sale in an auction that drew a first round of bids earlier this week.

Global Markets Up …

Finally, early strength for stocks on Tuesday didn’t turn to weakness. In fact, . . .

The Russell 2000 (NYSE:IWM) navigated choppy trading today as investors waited on specifics surrounding the U.S. government’s plan to aid the housing and financial markets. Large financial firms Citigroup and JPMorgan Chase answered a call from lawmakers and regulators made on Thursday and temporarily halted foreclosures today until the government’s plan emerges.

Unclear details made for an unclear trading day, and stocks see-sawed on high, rudderless volatility. In the end, small caps closed down 2.06, or 0.46%, to 448.36, while the Dow closed down 1.04% and the S&P 500 fell 1%.

Aside from the financial rescue plan currently being voted on in the Senate front, bad news was thrown into the trading mix before the opening bell, when a sudden freefall in Lloyds Banking Group sparked a pullback off pre-market highs in stock index futures and pulled down sentiment into the U.S. stock market open. At one point, Lloyds was approaching 40% losses after saying that they would post a bigger loss than expected. Shortly after, Wells Fargo & Co. weighed on bank stocks further when the large cap reported a Q4 loss that was wider than expected.

Many small cap banks suffered on the sour news, especially Allied Irish Banks (NYSE:AIB), which tanked 19% on the close.

Crude oil prices rose 11.27%, or $3.83, to $37.81 per barrel, supported by enthusiasm for the anticipated approval of the U.S. stimulus program. Elsewhere on the commodities front, gold prices were taking a breather today, but have clearly benefited from safe-haven buying recently. Gold is currently at $942 per ounce.

Earlier this morning, the University of Michigan consumer sentiment survey came in at 56.2, which was well below the forecast of 61, and which appeared to trigger a mild selling extension in the stock market. A sub-index of the report on consumer expectations tumbled to the lowest level since May 1980.

Individual small caps on the move today included Savient Pharmaceuticals Inc. (Nasdaq:SVNT), which fell 19% on news that an FDA review of its gout . . .

Small-cap stocks edged slightly lower in choppy early trade, with a downward spike in Europe bank stocks throwing a little cold water on a mild pre-market rise. Support stems from upbeat psychology as investors anticipate final formal approval today on a $789 billion stimulus spending plan. A dour reading on sentiment also played into the cautious early tone. At 9:55 a.m. ET, the Russell 2000 (NYSE:IWM) was down 1.05, or 0.23%, at 449.37.

A sudden freefall in Lloyds Banking Group this morning sparked a pullback off pre-market highs in stock index futures and pulled down sentiment into the U.S. stock market open. At one point, Lloyds was approaching 40% losses after saying that they would post a bigger loss than expected, which sparked spillover selling into Barclays and Royal Bank of Scotland. The volatility in Lloyds was severe, with the stock bouncing back to a 7% loss by the U.S. open. U.S. bank stocks were down about 3% shortly after the open, serving as a primary drag on the overall market indices.

The University of Michigan consumer sentiment survey came in at 56.2, which was well below the forecast of 61, and which appeared to trigger a mild selling extension in the stock market. A sub-index of the report on consumer expectations tumbled to the lowest level since May 1980.

The Obama Administration is looking at establishing a program to help subsidize mortgage payments, which would presumably stem the tide of foreclosures. That news helped spark a late recovery move in stocks Thursday and now faces deeper scrutiny by market watchers today and over the weekend.

Australian lawmakers passed their own stimulus spending program, overcoming some political hurdles that stalled passage earlier this week. The plan calls for $28 billion in spending stimulus projects, joining the U.S., China and other countries . . .

Small-cap stocks drifted lower, pulled down by concerns over sizable upward revisions in recent employment reports, which countered any upside glee when the headline non-farm figure was below “worst-case” scenarios. The market is now in a position today of working out whether this jobs report is already priced into the market, or reflects a little darker picture than current stock market valuations. At 9:52 a.m. ET, the Russell 2000 (NYSE:IWM) was down 12.03, or 2.46% at 489.68.

The Labor Department report showed that 524,000 non-farm payroll jobs were lost in December, which was in line with the average analyst forecast for a decline of 525,000 jobs. However, “whisper” numbers were upward of 650,000, so the key headline figure on the jobs release was basically better than feared. That said, some of the other details were not pretty. For instance, the unemployment rate climbed to 7.2%, which marked the highest level in 16 years, and which was above the 7.0% consensus projection. It was also the largest year-over-year increase in the unemployment rate since the 1982 recession. What’s more, the Labor Department dramatically revised job loss figures for October and November, adding another ...

The Russell 2000 (NYSE:IWM) closed down nearly 8% today, sinking to the lowest point since May 2003. Some of today’s small-cap gainers are Orexigen Therapeutics (Nasdaq:OREX), Retalix Limited (Nasdaq:RTLX) and Targanta Therapeutics (Nasdaq:TARG).

Other Market Watch highlights today included:

• The consumer price index headline figure came in at minus 1%, which was slightly below the consensus forecast for a dip of 0.8%.
• The MBA Mortgage Application Index slipped 6.2% and is hovering near 8-year lows as the housing market continues to struggle. 
• Single-family housing starts tumbled to the lowest level in 27 years.
• Automobile manufacturers, REITS, health-care facilities and hot commodities like aluminum and coal were all down. 
• The yield on benchmark 10-year notes collapsed some 4.5% today and the yield on five-year notes hit a five-year low.
• The chart picture for small caps is decidedly one-dimensional, with all the power and the dynamic long-term patterns pointing to further decay.

Small Cap Gainers:

• Orexigen Therapeutics Inc. (Nasdaq:OREX) closed up 20% without any apparent fresh news behind the move.
• Retalix Limited (Nasdaq:RTLX) closed up 20.5% on light volume this morning, following earnings results earlier this week that showed a decline in Q3 profit, prompting small cap to cut guidance.
• Targanta Therapeutics Corp. (Nasdaq:TARG) was a featured small-cap in rally mode Monday and the move was extended today –- the company closed . . .

Small-cap stocks went into free-fall mode into midday trading, pulled down by worries a collapse in the nation’s auto manufacturing business could sweep into a wider problem for an economy already in the throes of recession. In addition, money continues to move out of equities and into credit instruments as investors seek safe-haven outlets to try and ride out this storm. That safe-haven mentality also takes a deeper toll on small caps, which are seen as even riskier than large-cap companies. At 12:35 p.m. ET, the Russell 2000 (NYSE:IWM) was down 20.18, or 4.51% at 427.34, hitting the lowest price since May 2003.

General Motors Corp. (NYSE:GM) was down 15% on perceptions that this week’s lobby efforts by auto executives in Washington might not yield a rescue package for embattled automakers, or that an aid deal might not get there quick enough to stem a downward spiral through automakers, parts suppliers, etc. Ford Motor Co. (NYSE:F) tumbled 21%, but with the stock trading well below $2 a share, the percentage moves are easily magnified.

Yields on benchmark 10-year notes tumbled more than 3.5% at mid-session as investors made a stampede for Treasury products to try and park cash somewhere safe. The yield on five-year notes already hit five-year lows ahead of the opening this morning. The push for safe-haven outlets has extended into the gold market, where a report from the World Gold Council today said that global demand for the yellow metal soared 18% in the third quarter. While industrial metals such as copper have been pummeled by the economic crisis, which slows demand for building materials, gold stands to benefit by panic in financials and hope from long-term gold hoarders that all these bailout programs will eventually spark inflation.

However, any hope for inflation on the horizon seems like a far-off concern, especially after today’s CPI report showed that consumer prices notched the biggest decline in 61 years of data history. In fact, the deflationary environment right now just makes Treasury products even more attractive because inflation devalues fixed income investments.

Sometimes on days like today it’s interesting to see just what companies are doing well when the rest of the market is sinking. On the small-cap front, . . .

Protherics (Nasdaq:PTIL), Heelys Inc. (Nasdaq:HLYS) and Cheviot Financial Corp. (Nasdaq:CHEV) are among the biggest percentage gainers in Thursday's trading among companies with market capitalizations under $1 billion.   

Also included among the results: Deltek Inc. (Nasdaq:PROJ), Beazer Homes USA Inc. (Nasdaq:BZH), Noble International (Nasdaq:NOBL), Orexigen Therapeutics Inc. (Nasdaq:OREX), Pzena Investment Management Inc. (Nasdaq:PZN) and Ceco Environmental Corp. (Nasdaq:CECE). 

Here are the biggest percentage gainers among small caps:    

Deltek Inc. (Nasdaq:PROJ), 3D Systems Corp. (Nasdaq:TDSC) and Cheniere Energy Inc. (Nasdaq:LNG) are among the new 52-week lows in Friday's trading among companies with market capitalizations under $750 million.

Primedia Inc. (Nasdaq:PRM), Community Bancorp (Nasdaq:CBON) and Orexigen Therapeutics Inc. (Nasdaq:OREX) are also among the new 52-week lows.

Here are the new 52-week lows among small caps:

Orexigen Therapeutics, Inc. (Nasdaq: OREX) shares are trading heavily after the obesity drug developer announced it will price its public offering of seven million shares of common stock at $11 apiece. The price represents a 4% discount from Wednesday’s closing price of $11.41.

The firm has approximately 26.9 million shares outstanding.

For the offering, Merrill Lynch & Co. acted as the book-running manager and Leerink Swann LLC acted as co-lead manager for the offering. JMP Securities LLC, Lazard Capital Markets, Canaccord Adams Inc. and Natixis Bleichroeder Inc. acted as co-managers for the offering.

In morning trading, OREX shares are down 5%, or $0.57, at $10.84. Over the last 52 weeks, shares have ranged from $10.80 to $19.15.

China Shenghuo Pharmaceutical Hldg, Inc. (AMEX: KUN), Cape Fear Bank Corp. (Nasdaq: CAPE) and SulphCo, Inc. (AMEX: SUF) are among the biggest percentage gainers in Thursday's trading among companies with market capitalizations under $750 million.

Here are today's biggest percentage gainers:

Marchex, Inc. (Nasdaq: MCHX), Directed Electronics, Inc. (Nasdaq: DEIX) and Scientific Learning Corp. (Nasdaq: SCIL) are the biggest percentage losers in Friday's trading among companies with market capitalizations under $500 million.

Here are today's biggest percentage losers:

A management-led team of truckload carrier U.S. Xpress Enterprises (Nasdaq: XPRSA) announced it plans to initiate a $20 per share offer for all class A common stock.

The Associated Press reported on Sunday that General Electric Co. (NYSE: GE) is buying thin film products from DayStar Technologies Inc. (Nasdaq: DSTI).

America First Apartment Investors, Inc. (Nasdaq: APRO) reported it has signed a contract with Sentinel Omaha LLC, an affiliate of the privately held Sentinel Real Estate Corp., for $25.30 per share, or about $532 million in cash.

Professional services company Versar Inc. (AMEX: VSR) announced it was awarded a design and build contract for the U.S. Army Corps of Engineers. The contract is associated with the base realignment and closure program at Fort Lee, Va.

Orexigen Therapeutics, Inc. (Nasdaq: OREX) announced its weight loss treatment Contrave showed a positive effect on visceral fat and insulin resistance in a mid-phase study.

European hedge fund firm GLG Partners announced its plan to go public though a transaction with Freedom Acquisition Holdings, Inc. (AMEX: FRH).

Citing a new management team and expansion outside its core denim business, CIBC World Markets upgraded True Religion Apparel, Inc. (Nasdaq: TRLG) to “sector outperformer” from “sector performer.”

These are the biggest percentage gainers in Monday's trading among companies with market capitalizations under $500 million: