Small caps tumble 2.84%; BWEN, HEP and FBSS lead gainers

SCI Microbloggers | Oct 14, 2008 4:50pm EDT | Comment

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Small-cap stocks resumed the slide Tuesday, closing down 2.84%, unable to drift higher off soaring bank and financial stocks as worries about an economic slowdown put a damper on the consumer spending outlook and corporate profit projections. Small-cap gainers today included Broadwind Energy (OBB:BWEN), Holly Energy (NYSE:HEP) and Fauquier Bankshares (Nasdaq:FBSS). Other Market Watch highlights today included:

• Large-cap banks and financial institutions were the best performers today, boosted by news that the U.S. government will use $250 billion in taxpayer funds to purchase stock in select big banks.
• Treasury markets fell hard as the safe-haven push dulled amid strong gains in equities.
• At one point late Tuesday afternoon, the Russell was flirting with the third-largest one-day decline of 2008.
• The good news about the government buying big bank stocks was of little immediate solace to retailers, with the S&P Retail Index sinking nearly 4%.
• Crude oil futures turned lower, slipping about 2% back below $80 a barrel on concerns that a recession will demolish demand.
• BMO Capital’s Andy Busch told SmallCapInvestor.com that investors shouldn’t “get too excited by the upmove” today. “The Z factor,” or the unknown impact on companies’ sales or earnings, “will cap this rally as will the terrible economic numbers that will come out over the next six weeks,” Busch said.

Small Cap Gainers:

• Broadwind Energy Inc. (OBB:BWEN) jumped some 57%, gapping higher to close above the 20-day moving average for the first time in a month.
• Holly Energy (NYSE:HEP) up 22% on favorable Deutsche Bank note, citing refiners that operate in the Mid-Conn will get crude cheaper.
• Fauquier Bankshares (Nasdaq:FBSS) jump 25%, as banks see a green day.

Small Cap Losers:

• Domino's Pizza (NYSE:DPZ) hit an all-time low and slumped about 27%, proving that domestic demand is weak.
• Energy Solutions Inc. (Nasdaq:ES) shed some 45% as the company said that the financial crisis will delay some of its work and the firm updated its outlook.
• La-Z-Boy Inc. (NYSE:LZB) was off about 17%, giving back a sizable chunk of the recovery off last week’s lows.