Small caps close down 3%; RVSB, JAKK and OXPS lead gainers

SCI Microbloggers | Oct 21, 2008 5:08pm EDT | Comment

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The Russell 2000 (NYSE:IWM) closed down nearly 3% on Tuesday and is now down 31% for the year. For the first time in many months, the Dow has actually pulled virtually even with the Russell for 2008, while the S&P 500 is off 35%. Today’s small-cap gainers are Riverview Bancorp (Nasdaq:RVSB), Jakks Pacific (Nasdaq:JAKK) and optionsXpress (Nasdaq:OXPS).

Other Market Watch highlights today included:

• The worst performing broad market sectors were metals and mining stocks, steel, gold, integrated oil and gas firms and coal shares.
• If Monday’s big rally was primarily about energy, then the main theme in motion today was about the economy and whether or not global slowing would continue to get in the way of the stock market.
• From a global standpoint, a recession in the United States and a sharp downturn around the world will hurt demand for commodity goods, a theme that played out today.
• Highlighting the bruised demand is copper, which today crumbled to the lowest point since Dec. 2005 and is now 50% from the spring highs.
• Crude oil futures plunged some 4% and quickly took some of the shine off Monday’s energy-led rally.
• This tug-of-war between valuation and the economy is always in play for the stock market, but Tuesday was center stage as investors decided whether stocks are cheap enough to warrant the risk.
• While earnings were a big part of today’s action, it seemed like the market overlooked many of the results to focus in on worries in the tech sector.

Small Cap Gainers:

• Riverview Bancorp posted a loss for fiscal Q2 on an investment security a charge, but said its liquidity position remains strong. Shares closed up 26%. (Nasdaq:RVSB).
• Jakks Pacific reports 14% increase in Q3 bottom-line on tax benefit and higher sales, reaffirmed full-year guidance. See (Nasdaq:JAKK).
• OptionsXpress posts Q3 net income that beat the Street, but edged down from a year-ago. Shares closed up 14%. See (Nasdaq:OXPS).
• Medifast closed up 12% on no fresh news. See (NYSE:MED).

Small Cap Losers:

• ENGlobal Corp. was down 34% as the firm released preliminary earnings that were hurt by Hurricanes Ike and Gustav and high labor costs. See (Nasdaq:ENG).
• Telecom Argentina SA tumbled 24% as overseas ADRs took a hit on the commodities scare. See (NYSE:TEO).
• Rental car company Avis plunged 32%. Last week an analyst downgraded the small cap, citing the U.S. market. See (NYSE:CAR).
• Anixter International slumped 25% after posting third-quarter earnings that substantially missed the Street. See (NYSE:AXE).