RCRC, PNBK, & DEST Stun the Market

Stocks are trading higher this afternoon as earnings reports from industrial and technology companies have buoyed investor sentiment.

At 2:00 pm ET, the Russell 2000 (NYSE:IWM) is up 1%, while the Dow is slightly lower at 0.19%, and the S&P 500 is trending 0.30% higher.

Small-cap Continental Airlines Inc. (NYSE:CAL) rose $0.58, or 3.9%, to $15.58 today despite reporting this morning that it lost $136 million in the first quarter as traffic fell and business travelers saved money by moving from first-class to the coach cabin.

Other small caps moving higher today include RC2 Corporation (Nasdaq:RCRC), up a whopping 45% after posting a surprise Q1 profit and guiding above estimates. Patriot National Bancorp (Nasdaq:PNBK) is up 35% on very low volume, and small-cap retailer Destination Maternity Corp. (Nasdaq:DEST) is up a stunning 32% after reporting its Q2 earnings.

*****I received a very topical question from a SCI Daily reader …

Do you think that Obama is a legitimate "for the ordinary people" real deal, or is he just another cleverly marketed pretty face representing the interests of the ruling class? If you prefer call them the rich, the wealthy, the owners, the bosses … whatever works for you. In the end they are the same people. I deliberately did not label them as capitalists because I believe that they are corrupt capitalists, scamming the game in their favor even though their performance is proven to be mediocre. In real capitalism, ability and performance matter. As in, let the failed banks, brokerages, etc fail and allow the strong to take them over. When I read about these recent government led bailouts it becomes clear that we have been set up and conned into taking the hit for the unworthy managers, making it possible - inevitable - for the rich to triumph regardless of their audacious arrogance and incompetence.  This is not what I understand capitalism to be - and it stinks!

I have to admit, I started to get sucked in by the President’s charm the day he stood on the steps of the Capitol and told us of the sacrifices and hard work that lay ahead for Americans.

I also must now admit that I am extremely disappointed in how President Obama he has dealt with continuing problems on Wall Street. He has repeatedly shown that he is unwilling to take a hard line with the likes of AIG, Citigroup, Goldman Sachs and all the rest.

When the bankers can dictate policy, America is in serious trouble. That’s what got us to where we are now and quite frankly, President Obama doesn’t seem to be changing this situation, for whatever reason, and you’re right: it stinks.

Wall Street has essentially robbed America. And now Washington is driving the getaway car. Washington is essentially helping Wall Street with . . .

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