Russell closes in the red; TARG, CTS and PHH lead gainers
Just when it looked like the Russell 2000 (NYSE:IWM) would close out Monday with a small gain, the index tipped into the red ahead of the bell on slumping financial stocks and concerns about the economy. Today’s small-cap gainers are Targanta Therapeutics (Nasdaq:TARG), CTS Corp. (NYSE:CTS) and PHH Corp. (NYSE:PHH).
Other Market Watch highlights today included:
• The NY Manufacturing Survey came in at -25.4, better than the forecast for -26.1. Still, it was the worst showing on record.
• Libor rates edged slightly higher overnight and have been correcting up slightly after going down every day for a month.
• The market was sharply divided today, with strong gains seen for several sectors, but big losses offsetting in other sectors, which had cumulative effect of keeping index movement relatively stable.
• Crude oil prices had an up and down day, but eventually succumbed to the economic fears and shed $2.09 a barrel, or 3.6% on the day.
• Philly Fed says U.S. has been in a recession since spring, it will last 14 months, making it the most prolonged growth drought since the Great Depression.
Small Cap Gainers:
• Targanta Therapeutics Corp. (Nasdaq:TARG) rallied 36% on unusually heavy volume on news that the FDA will review an application for a skin infection drug made by the firm.
• CTS Corp. (NYSE:CTS) rose 18% as the electronics manufacturing supplier continued to rally off 52-week lows forged last week.
• PHH Corp. (NYSE:PHH) rose 17% as the financial services firm also tries to mount a comeback off move lows carved out last week.
Small Cap Losers:
• National Financial Partners Corp. (NYSE:NFP) dove 30% at closing. Earlier this month the company announced it would be cutting jobs and suspending its dividend.
• Allied Capital Corporation (NYSE:ALD) down 20% today after analysts said late last week that the company faces liquidity issues.
• Brown Shoe's (NYSE:BWS) shares tumbled 18% on analyst downgrade.
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