Small caps sink on econ worries, tech warnings

Small-cap stocks got hammered today as worries about the economy amid rising unemployment and fresh profit warnings in the technology sector sparked a wave of selling. The Russell 2000 (NYSE:IWM) notched the best performance of the year Tuesday and followed it up with the worst performance in quick order, losing 17.61, or 3.42% to 497.10. The Russell also slipped into negative territory for the first time this year, and is now off 0.5%, while the Dow is down 0.1% and the S&P 500 is up 0.4%.

There really was no safe port in today’s storm. Usually when stocks are getting whacked you will see money flow into credit markets, or get parked in gold, or maybe find a home in energy or some other commodity goods market. But today, equities were lower, Treasuries were lower, the dollar was lower, crude oil was lower, grains were lower, and gold was lower; heck, even livestock futures were slaughtered today. Just four trading days into the New Year, everyone got a harsh reminder that an economy in recession with credit yields near record lows is not a pleasant position for investors or businesses.

Bears woke up with a roar this morning as the ADP National Employment Report ...

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