Small caps closed up nearly 5% today, marking the third consecutive higher close, which has not happened since Sept. 12. Today’s small-cap gainers are First Industrial Realty (NYSE:FR), Horizon Lines (NYSE:HRZ) and Conceptus, Inc. (Nasdaq:CPTS).

Other Market Watch highlights today included:

• Small caps show bottoming promise on daily studies, but will need a strong close Friday to suggest any decent reversal formation on weekly time frames.  
• Sectors doing well today included airlines, homebuilders and consumer staples.  
• Insurance, merchandise stores, casinos and leisure products companies all struggled today.  
• Crude oil prices were actually off $1.54 to $65.96 and the Commodity Research Bureau Index of 19 physical markets was down 2.8%.  
• Gas utilities, oil and gas storage and oil and gas drilling stocks were among the best-performing broad market sectors.  
• The market continues to nod with approval at the string of declines on inter-bank lending rates, which suggest that confidence is growing between banks on the lending front.  
• The GDP report released today marked the steepest contraction in seven years and reflected the first quarterly decline in consumer spending since 1991. 
• Economists are unanimously calling for things to get quite a bit worse in the fourth quarter.

Small Cap Gainers:

• Horizon Lines Inc. shares up 43%, trying to mount a comeback after sinking to 52-week lows a few days ago. See (NYSE:HRZ).  
• Conceptus, Inc. rallies 47%, also getting an earnings boost as the birth control firm saw net sales up 62%. See (Nasdaq:CPTS).  
• First Industrial Realty Trust Inc. soars 54% on solid quarterly earnings See (NYSE:FR).  
• Brazilian pulp and paper product company Votorantim Siderurgia maintains expansion plans, shares rise 21%. See (NYSE:VCP).  

Small Cap Losers:

• Polypore International reports Q3 results, company downgraded to "neutral." Shares plummet over 38%. See (NYSE:PPO).
• Protective Life Corp. careens 14.5% on higher-than-average volume. See (NYSE:PL).  
• Automotive supplier Lear Corp. swings to Q3 loss amid lower N. America, Europe auto output. Announces it will make more salaried job cuts. Shares down 10.4%. See (NYSE:LEA).  
• Mobile equipment maker Sauer-Danfoss sees a rise in Q3 profit, cuts FY08 earnings guidance. Shares are down 24%. See (NYSE:SHS).  

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