Russell remains low in midday; GRA, THOR, and JEF lead gainers
Small-cap stocks remained solidly lower into midday trading, as a sharp reduction in non-farm payrolls and the highest unemployment rate in 15 years took a toll on the investor psyche. Energy and commodity stocks were the primary bearish influence, although a pullback in homebuilder and retailer shares also weighed on the market. Some of today’s small-cap gainers are W.R. Grace & Co. (NYSE:GRA), Thoratec Corp. (Nasdaq:THOR) and Jefferies (NYSE:JEF).
Other Market Watch highlights today included:
• Many experts are expecting the unemployment rate will continue to ratchet higher in December and January.
• With plenty of somber news in the air today, it was interesting to see that financial stocks were holding up reasonably well.
• Big losses were seen in oil exploration and oil production, broadcasting, gold stocks, oil and gas drillers, power products, metal and mining shares, forest products, coal and oil and gas storage.
• The Commodity Research Bureau Index was down 2.3% this morning, setting fresh bear market lows while tumbling to the lowest point since August 2002.
Small Cap Gainers:
• W.R. Grace & Co. will pay up to $140M over time into a fund for individuals injured by the company’s asbestos-containing Zonolite attic insulation. Shares climb 16%. See (NYSE:GRA).
• Thoratec Corp. climbs 15% as the firm said its trial heart pump device was a noted improvement. See (Nasdaq:THOR).
• Jefferies up 14% despite rumores that Moody's may downgrade the firm. See (NYSE:JEF).
• Asbury Automotive Group up 10% on very light volume. See (NYSE:ABG).
Small Cap Losers:
• Patriot Coal Corp. is off 15%, swayed not only by the commodities fall, but also by news that Bank of America Corp. (NYSE:BAC) would cut lending to coal mining companies in an environmental move. See (NYSE:PCX).
• Exco Resources Inc. is off 17% as the oil and gas firm also was pulled under with the energy decline. See (NYSE:XCO).
• Tecumseh announces share recapitalization plan; motion to remove directors fails. Stock is down 1.5%. See (Nasdaq:TECUA).
• Orbitz Worldwide falls 13% as online travel sites slump on lower traffic. See (NYSE:OWW).
Other Market Watch highlights today included:
• Many experts are expecting the unemployment rate will continue to ratchet higher in December and January.
• With plenty of somber news in the air today, it was interesting to see that financial stocks were holding up reasonably well.
• Big losses were seen in oil exploration and oil production, broadcasting, gold stocks, oil and gas drillers, power products, metal and mining shares, forest products, coal and oil and gas storage.
• The Commodity Research Bureau Index was down 2.3% this morning, setting fresh bear market lows while tumbling to the lowest point since August 2002.
Small Cap Gainers:
• W.R. Grace & Co. will pay up to $140M over time into a fund for individuals injured by the company’s asbestos-containing Zonolite attic insulation. Shares climb 16%. See (NYSE:GRA).
• Thoratec Corp. climbs 15% as the firm said its trial heart pump device was a noted improvement. See (Nasdaq:THOR).
• Jefferies up 14% despite rumores that Moody's may downgrade the firm. See (NYSE:JEF).
• Asbury Automotive Group up 10% on very light volume. See (NYSE:ABG).
Small Cap Losers:
• Patriot Coal Corp. is off 15%, swayed not only by the commodities fall, but also by news that Bank of America Corp. (NYSE:BAC) would cut lending to coal mining companies in an environmental move. See (NYSE:PCX).
• Exco Resources Inc. is off 17% as the oil and gas firm also was pulled under with the energy decline. See (NYSE:XCO).
• Tecumseh announces share recapitalization plan; motion to remove directors fails. Stock is down 1.5%. See (Nasdaq:TECUA).
• Orbitz Worldwide falls 13% as online travel sites slump on lower traffic. See (NYSE:OWW).
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