Small caps plummet; CFNB, WMCO and SFSF lead gainers

SCI Microbloggers | Feb 10, 2009 4:53pm EST | Comment

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The Russell 2000 (NYSE:IWM) fell hard today, as investors worried that a new plan to rescue a teetering banking system might be “too little, too late” to stave off a deepening recession or unclog credit lines. Some of today’s small-cap gainers were California First National Bancorp (Nasdaq:CFNB), Williams Controls (Nasdaq:WMCO) and SuccessFactors (Nasdaq:SFSF).

Other Market Watch highlights today included:

• U.S. stocks were seen opening lower, pulled down by losses overseas as the market waits for updates on the fiscal stimulus vote and on the bank bailout details.
• Copper prices and shares of copper miners were on the defensive overnight, a caution sign as copper is considered a key economic indicator.
• The wholesale inventories report came in at minus 1.4%, which was a bigger drop than forecast.
• Small-cap stocks plunged as investors engaged in a “buy-the-rumor, sell-the-fact” response to the official rollout of the bank bailout plan
• Bernanke said that financial markets were frozen over about the economy and hinted that there was a risk for stagflation if the banking system is not fixed.
• With investors fleeing stocks today and scrambling for safe-haven outlets, money clearly moved into Treasury products.
• Crude oil futures in New York eventually closed down 5.5%, or $2.21, to $37.35 a barrel and energy stocks sank some 4.5% on the day.
• Given the focus on bank rescue news today, bank stocks were the worst performers today, with the KBW Banking Index tumbling 13%.
• Almost all of S&P sector groups were in the negative today. Even gold, which saw a lift into mid-session, couldn’t hold above ground.

Small Cap Gainers:

• California First National Bancorp popped 31.5% on very light trading volume. See (Nasdaq:CFNB).
• Williams Controls reports Q4 EPS of $0.26, guides Q1. Shares climb 14% higher today. See (Nasdaq:WMCO).
• SuccessFactors Inc. climbed 5% as the management solutions software firm reported earnings. See (Nasdaq:SFSF).

Small Cap Losers:

• Small-cap entertainment studio Lions Gate Entertainment Corp. tumbled 27% after the firm said revenue would miss the forecast. See (NYSE:LGF).
• Dry bulk shipper Safe Bulkers Inc. tumbled 19% after releasing earnings figures. See (NYSE:SB).
• Homebuilders were one of the poorest performers in today’s trading. Small-cap homebuilder Centex Corp. shed 13%, while Meritage Homes Corp. fell some 12%. See (NYSE:CTX) and (NYSE:MTH).