Small caps rally on Fed comments; HIFN, RMBS and UNFI lead gainers

The Russell 2000 (NYSE:IWM) rallied nearly 5% today after Fed Chairman Ben Bernanke said the recession may end in 2009. Some of today’s small-cap gainers were Hifn, Inc. (Nasdaq:HIFN), Rambus (Nasdaq:RMBS) and United Natural Foods (Nasdaq:UNFI).

Other Market Watch highlights today included:

• The Consumer Confidence Index plunged more than 12 points in February to 25, from 37.4 last month, and far below the predicted 35.5 level.
• The Standard & Poor's/Case-Shiller U.S. National Home Price Index released horrid data today showing a plung of more than 18% during the quarter from the prior-year period. This is the largest drop in its 21-year history.
• The Federal Housing Finance Agency also said today that home prices dropped more than 8 percent in the quarter from a year earlier, its largest annual decline on record since 1991.
• Fed Chairman Ben Bernanke spoke to Congress, pledged to use all available tools to lift the country out of the recession.
• Bernanke said the U.S. economy will probably keep shrinking in the first six months of the 2009, but is hopeful that the recession will end this year. 
• The Russell 2000 closed up 17.90, or 4.54%, to 412.48.
• The Dow rose more than 230 points, or 3.3%, to 7,350.94; S&P 500 closed about 4% to 773.14.
• For the year, the Russell is now down 17.41%, while the Dow has is down 16.24% and the S&P 500 is down 14.4%.

Small Cap Gainers:

• Exar Corporation signs definitive agreement to acquire Hifn, Inc. Shares of HIFN rocket 62% at closing. See (Nasdaq:HIFN).
• High Court denies FTC antitrust review of Rambus, sending shares 40% higher. See (Nasdaq:RMBS).
• United Natural Foods climbed 20% after posting higher Q2 earnings, updating FY09 forecast. See (Nasdaq:UNFI).

Small Cap Losers:

• Heartland Payment Systems guided below estimates, shares tumbled 30%. See (NYSE:HPY).
• RadioShack fell 24% today after seeing a 39% Q4 net drop on falling margins, sales. See (NYSE:RSH).
• Apparel small-cap Hanesbrands was down 7% after announcing it will review its long-term growth strategies, capital structure and the 2009 business environment. See (NYSE:HBI).

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