Russell extends rally; SRI, WSM and JRCC lead gainers

SCI Microbloggers | Nov 24, 2008 4:49pm EST | Comment

Rating: Unrated [rate it]

The Russell 2000 (NYSE:IWM) extended its stellar rally from Friday, closing up 7.44% today as the markets enthusiastically embraced the government’s Citigroup rescue plan along with President-elect Barack Obama’s economic staff appointments. Some of today’s small-cap gainers are Stoneridge Inc. (NYSE:SRI), Williams-Sonoma Inc. (Nasdaq:WSM) and James River Coal Co. (Nasdaq:JRCC).

Other Market Watch highlights today included:

• The existing home sales report came in at an annual rate of 4.98 million, which was basically in line with the forecast.
• The government’s rescue package for Citigroup Inc. announced today includes $306B in loan guarantees on toxic debt assets and $20 billion in direct cash injection.
• Most of President-elect Barack Obama’s key cabinet selections announced today had already been leaked to the press, and helped fuel the rally carried over from Friday.
• Investment banks, brokerage firms, diverse financial instruments, wireless telecoms, homebuilders, coal, real estate services were all higher.
• Energy and commodity names were a big part of the rally today, as beaten down stocks in those arenas benefited from both the stock market rally and by a sharp decline in the U.S. dollar against the euro.
• Crude oil prices caught fire today, climbing $4.57 a barrel, or 9.1%, providing a boost to energy companies in the process.
• For the year, the Russell is down 43%, while the Dow is off 36% and the S&P 500 is down 42%.

Small Cap Gainers:

• Stoneridge Inc. shot up 64% as the vehicle electrical component maker bounced off last week’s lows. See (NYSE:SRI).
• Williams-Sonoma Inc. surged 36% as the operator of retail store Pottery Barn rallied hard off fresh 52-week lows set Friday. See (Nasdaq:WSM).
• James River Coal Co. soared 32% as investors tried to find bargains in commodity shares. See (Nasdaq:JRCC).

Small Cap Losers:

• LandAmerica shares collapsed 88% on Fidelity deal termination. Today shares hit a new 52-week low of $0.43, down from a 52-week high of $53.23. See (NYSE:LFG).
• Tween Brands closed down 26% following last week's announcement of a drop in Q3 sales, earnings due to the "challenging environment." See (NYSE:TWB).
• Ann Taylor swings to Q3 loss, sees tough Q4. Shares closed down 7.7%, near a new 52-week low of $4.05 made today, down from a 52-week high of $32.82. See (NYSE:ANN).