Small caps now rising

Stocks have moved into positive territory this afternoon, with the Russell 2000 (NYSE: IWM) leading the way up. At 2:11 p.m. ET, the small-cap index had added 8.90 points, or 1.11%, to 807.69. The Dow Jones Industrial Average (INDU) was up 46.99 points, or 0.35%, to 13,569.01.

Small caps are posting solid gains with two hours left in the session after spending the morning alternating between the green and the red.

Trading began on a bearish note due to fears of a U.S. economic slowdown. Finance ministers and central bankers from the G7, the world’s top seven industrialized countries, said over the weekend that U.S. economic growth will decelerate due to tighter credit, the housing slump and the high price of oil.

Contributing to the negative mood was news that financial services giant Lehman Brothers Holdings Inc. (NYSE: LEH) has downgraded the mortgage finance sector as well as individual finance companies. Among small caps, Luminent Mortgage Capital, Inc. (NYSE: LUM) is sagging, while Capstead Mortgage Corp. (Nasdaq: CMO) has moved higher.

Elsewhere, the price of commodities has fallen on expectations that slower economic growth will hurt demand for raw materials. The price of oil has fallen $0.83, to $87.77 a barrel.

Here are the current biggest percentage gainers and losers among companies with a market cap between $100 million and $750 million:

Biggest percentage gainers:

• Radiation Therapy Services Inc. (RTSX), up 43% on news of a buyout.
• Ceragon Networks Ltd. (CRNT), up 16% on news third-quarter profit doubled.
• Standard Pacific Corp. (SPF), up 14%.

Biggest percentage losers:

• Silicom Ltd. (SILC), down 22%.
• L. B. Foster Company (FSTR), down 12%.
• SulphCo Inc. (SUF), down 13%.

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