Small caps near steady levels; techs, energy offset financials

Small-cap stocks were hovering near steady levels into midday trading, drafting off a surprising show of strength in the technology arena and another solid performance from energy and commodity stocks, which helped offset weakness in financial shares. At 12:31 p.m. ET, the Russell 2000 (NYSE:IWM) was up 0.79, or 0.16%, at 482.17, easily outperforming the large-cap Dow and S&P 500, both of which were in negative territory.

Coming into today’s action, technology stocks were supposed to be a sore spot for investors after Japan’s Sony announced massive layoffs and Texas Instruments Inc. (NYSE:TXN) projected soft forward sales. However, investors once again showed a desire to cast aside bad news as part of a bottoming process that has already been priced into stock market declines this year. Instead of being a weak point, techs were leading the rally today, with the tech-laden Nasdaq 100 Index up 0.8% at mid-session.

Commodity stocks also were a bright spot for small caps so far today. Looking at S&P sector activity, the top performers included aluminum, steel, coal, oil and gas drillers (as well as semiconductors, life insurers and automotive retailers).

Crude oil prices actually slipped slightly into the red following a gloomy report on energy demand, but it didn’t take too much starch out of energy stocks, which were up some 2.7% at midday, among the better overall groups. Physical commodity markets turned up from a morning slide, bolstered by a pullback in the U.S. dollar, which went from a strong rise against the euro to a modest decline by midday.

Despite the resilient tone so far today for small caps, there are some noticeable points of weakness. Among S&P sectors, the poorest performers are real . . .

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