Russell dips into the red; NCC, AEG and DGLY lead gainers

SCI Microbloggers | Oct 14, 2008 2:19pm EDT | Comment

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After initially spiking out of the gate on the government’s plan to unfreeze credit markets by directly injecting capital in banks and guaranteeing loans between banks, the Russell 2000 has steadily descended into the red midday, as traders locked in profits from Monday’s goliath rally. Small-cap gainers today included National City Corp. (NYSE:NCC), Aegon China Insurance (NYSE:AEG) and ChinaTransInfo Technology (Nasdaq:DGLY). Other Market Watch highlights today included:

• Treasury markets were falling hard as the safe-haven push dulled amid strong gains in equities.
• The weakest sectors in today's trading are iron & steel and real estate operations/services. Insurance is one of the day's strongest.
• California-based communications equipment maker JDS Uniphase is the day's most active small cap. Shares are down 12.4% to $6.36.
• The dollar is mixed against the euro and the yen midday and gold is off $2 per troy ounce to $839.
• BMO Capital’s Andy Busch told SmallCapInvestor.com that investors shouldn’t “get too excited by the upmove” today. “The Z factor,” or the unknown impact on companies’ sales or earnings, “will cap this rally as will the terrible economic numbers that will come out over the next six weeks,” Busch said.

Small Cap Gainers:

• Aegon China Insurance (NYSE:AEG) up 26.3% on Monday's approval to open Tianjin unit.
• China TransInfo Technology (Nasdaq:CTFO) leaps 30%, after reaffirming robust guidance for the year.
• Digital Ally (Nasdaq:DGLY) jumps 25% on renewed statewide contract with West Virginia State Police.
• Commercial bank National City Corp. (NYSE:NCC) jumps 40%, as financials lead the way.

Small Cap Losers:

• Domino's Pizza (NYSE:DPZ) is down 23.4% to $7.66 on weaker-than-expected earnings and economic considerations.
• Rackable Systems (Nasdaq:RACK) currently down 13% on lowered fiscal 2008 view.
• YRC Worldwide’s (NYSE:YRC) long-term IDR rating cut to ‘B’ by Fitch; shares slip 15%.
• EnergySolutions (NYSE:ES) skids 27% after reporting it expects lower-than-anticipated EPS for ’08 on delayed nuclear plant decommissioning.