Small caps end in the green; TWB, DHI and LEN lead gainers
The Russell 2000 (NYSE:IWM) had an up and down session Tuesday, but in the end the bulls won the skirmish. Small caps closed up 1.46%, while the Dow and S&P 500 lagged gains. Some of today’s small-cap gainers are Tween Brands (NYSE:TWB), DR Horton (NYSE:DHI) and Lennar Corp. (NYSE:LEN).
Other Market Watch highlights today included:
• Tuesday morning’s report on U.S. GDP came in as expected, clearing the way for the market to start on a positive note. The report confirms that the economy is on pace for an “official” recession moniker if fourth-quarter growth contracts as expected.
• The Fed and Treasury announced a new TAL, which will be granted initial funding of $20B via the original $700B in TARP money.
• The Case-Shiller Home Price Index tumbled a record 17.4% from last year and the index was down 1.9% in September from the previous month.
• Retailers were in rally mode Monday, but were struggling to stay positive, just a few days in front of Black Friday.
• Tech stocks were a drag on the market, as the tech-laden Nasdaq-100 underperformed the rest of the market and shed 1% on the day.
• Crude oil took a dive today, tumbling $3.7 a barrel, or about 6.8%
• Despite the retreat on physical energy prices, energy stocks still managed to push higher today, and actually outpaced the broad market indices.
Small Cap Gainers:
• Tween Brands (NYSE:TWB) closed up 47% today, rebounding from major losses the stock saw on Monday.
• DR Horton Inc. (NYSE:DHI) jumped 38%, riding the overall housing updraft today despite reporting larger-than-expected quarterly losses.
• Lennar Corp. (NYSE:LEN) soared some 32% as the second-largest U.S. homebuilder benefited from an analyst upgrade.
• Developers Diversified Realty (NYSE:DDR) reported insider buying; shares closed up 30%.
• UAL Corp. (Nasdaq:UAUA) jumped 24%, gapping higher amid a pullback in energy prices today and news that the airline reached a new deal with its largest credit card processor, effectively suspending a requirement on maintaining additional cash reserves.
Small Cap Losers:
• Dycom Industries Inc. (NYSE:DY) fell 24% as the specialty construction contractor posted soft earnings.
• BankAtlantic Corp. (NYSE:BBX) closed down another 29% today following news on Friday that the SEC launched a probe into the company's handling of troubled loans and some of its officers' stock transactions.
• K-V Pharmaceuticals (NYSE:KV.A). dropped 16% after a bevy of law firms launched investigations into the small cap concerning losses suffered by investors who purchased stock between Feb. 15 and Nov. 12.
• TreeHouse Foods Inc. (NYSE:THS) tumbled some 15% as the food maker and pickle manufacturer received an analyst downgrade.
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