Small-cap stocks extended the morning rally into mid-session, with financial and bank stocks leading the way as hope swells for the government to sweep losing assets off bank balance sheets. Importantly, the Russell popped above the recent range highs from the Obama inauguration collapse, which could clear the way for a substantial push higher in the days to come. Some of today’s small-cap gainers were Orthovita Inc. (Nasdaq:VITA), Keynote Systems Inc. (Nasdaq:KEYN) and Sports Properties Acquisition Corp. (NYSE:HMR).

Other Market Watch highlights today included:

• Crude oil prices were mildly higher despite another build in the latest weekly inventory report.  
• Energy shares were higher, but noticeably trailing the overall market advance as large stockpiles and soft demand remain a limiting factor.  
• On the downside today, gold stocks and tobacco companies were lower, with the Gold and Silver Index down 1.6%.  
• Diversified banks, life health insurers, financial services firms, regional banks and asset management firms were top performers today. 

Small Cap Gainers:

• Orthovita Inc. climbed nearly 15% as the orthopedic biosurgery firm recovered a big chunk of recent declines on heavy turnover. See (Nasdaq:VITA).  
• Keynote Systems Inc. is up 8.6% as the online data firm rose to the highest point since Nov. 24 amid solid earnings. See (Nasdaq:KEYN).  
• Sports Properties Acquisition Corp. was only up 0.3%, but seeing a volume spike for the day without any apparent fresh news. See (NYSE:HMR).

Small Cap Losers:

• Century Aluminum Co. tumbled 30% as the firm announced plans for a common stock offering. See (Nasdaq:CENX).  
• Plantronics Inc. was down 9% as the headset maker took an earnings-related hit. See (NYSE:PLT).  
• Amylin Pharmaceuticals reports 2008 financial results; shares fall 6% in pre-market. See (Nasdaq:AMLN).

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