Small caps continue descent

Small caps declined after the opening, made a brief resurgence during the second hour of regular trading but have continued their descent in the afternoon. Concerns about the financial sector and FedEx Corp.’s (NYSE:FDX) warning that low demand and high fuel costs will impact profits kept investors gloomy. At 1:39 p.m. ET, the Russell 2000 (NYSE:IWM) was off 9.03, or 1.23%, at 727.54.

Regional banks are taking a beating, with Marshall & Iisley Corp. (NYSE:MI) sinking 4% to a new 52-week low on analyst downgrades while Zions Bancorporation (Nasdaq:ZION) also set a fresh 52-week low, losing about 3%. Unfortunately, the news remains depressing for banks and other financial stocks, with Fifth Third Bancorp (Nasdaq:FITB) losing 14% during the afternoon session. Within the financial arena, large-cap futures and commodities broker MF Global (NYSE:MF) is plunging some 38% after the Bermuda-based firm said revenues were below the forecast and news that the company will sell convertible securities to raise capital and . . .

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