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 . . .

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