Small caps in the green
After Wall Street’s steep slide on Monday due to the failed $700 billion bailout proposal, stocks rebounded this morning on speculation that the plan is still salvageable.
The Russell 2000 (NYSE:IWM) was a hair in the green, up 3.26, or 0.50%, at 660.98, while the Dow gained about 2% on the opening and the S&P 500 rose 2.2%.
Legislators are currently working to assuage investor anxiety and hope to pass a revised version of the bailout plan later this week. On Monday, small-cap stocks posted their largest one-day decline of 2008 and closed down near 7%, as fears of a global financial pandemic triggered waves of selling after Congress voted down the $700 billion rescue bill.
In small-cap news, network specialist Ciena Corporation (Nasdaq:CIEN) is up 1.88 at $9.73, following news before the opening of a deal with optical fiber network provider American Fiber Systems.
Grey Wolf, Inc. (AMEX:GW) this morning said the Federal Trade Commission has completed its review of the company’s proposed acquisition of Precision Drilling Trust. The merger is still subject to other regulatory approvals as well as approval by Grey Wolf shareholders. Earlier in the morning it was reported that CIBC World Markets downgraded the provider of contract oil and gas land drilling services to “sector perform” from “sector outperform.” Shares were up 5.48%, or $0.40, at $7.70.
About the Author
Crystal D. Vogt is Managing Editor at SmallCapInvestor.com.
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