Small caps plummet; CFNB, WMCO and SFSF lead gainers

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, . . .

For access to the full article, you must be a registered member - it's FREE.

Already a member? Please log in below