Small caps holding modest gains with commodity, drug stock support

Small-cap stocks remained higher into midday as investors looked beyond an awful reading on employment to snatch up bargains into the weekend. Gains for commodity stocks and drugs shares helped offset weakness in financials. At 12:44 p.m. ET, the Russell 2000 (NYSE:IWM) was up 6.05, or 1.22%, at 501.89.

The fact that the stock market was able to grind higher in the face of the highest unemployment rate in 14 years was a testament to the idea that most of the bad news on the economy has already been priced into the market collapse. Still, financial shares were limping along today and automakers were in full retreat mode as earnings for Ford Motor Co. (NYSE:F) and General Motors Corp. (NYSE:GM) was terrible and the companies are pushing for an emergency loan from the U.S. government.

The market might also be a little reluctant to press the downside following the worst two-day rout in stocks since 1987, thinking that the market was oversold into a weekend and ahead of an afternoon press conference by President-elect Obama, who is huddled with economic leaders in Chicago.

Crude oil prices edged higher, walking a tightrope between worries about demand amid a recession for their biggest customer and support from a dip in the U.S. dollar, which makes commodity goods more attractive on a pricing standpoint. The Energy Select Sector SPDR Fund was up 2.9% at midday, outperforming the broad market indices.

Individual stocks on the move today included Knot Inc. (Nasdaq:KNOT) which jumped nearly 30% as the media company that specialized in wedding plans and life planning reported decent quarterly results. Luminex Corporation (Nasdaq:LMNX) rallied 24% as the genetic analysis firm also received a lift from earnings news. On the downside, RHI Entertainment Inc. (Nasdaq:RHIE) slumped 27% as the made-for-television . . .

For access to the full article, you must be a registered member - it's FREE.

Already a member? Please log in below